Australian Economy | South China Morning Post
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  • Feb 1, 2015
  • Updated: 6:55pm

Australian Economy

Helped by its massive natural resources, Australia has weathered the global financial crisis better than other Group of 20 economies. In 2012, its economy grew 3.1 per cent, compared with 1.6 per cent in the United States and 1.1 per cent in Canada. 

Australia loses last carmaker as Toyota plans exit by 2018

Toyota will close its Altona plant in Melbourne in 2017. Photo: EPA

Toyota Motor will stop making cars in Australia in less than four years, it said yesterday, banging the final nail in the coffin of the country's vehicle industry, despite appeals to stay by Australian Prime Minister Tony Abbott.

Tuesday, 11 February, 2014, 1:47am

Private schools, dental visits fuel Australian inflation, pushing interest rate cuts off the table

The days are numbered for the Reserve Bank of Australia's easy-money policy. Photo: AFP

The laudable desire of Australians to be well educated and healthy is proving an expensive one, as escalating costs add to inflationary pressures even as the broader economy slows.

The stubbornness of domestic inflation is proving most unwelcome to policymakers who want to keep interest rates at rock-bottom levels as Australia struggles through the autumn of a historic mining boom.

3 Feb 2014 - 3:18pm

Surprise Australian jobs slide revives risk of rate cut, hammers currency

A moderation in wage growth and improving productivity were two positives in the Australian government's dismal employment report for last month. Photo: Bloomberg

Australian employers shed jobs at the fastest pace in nine months last month while full-time positions suffered their biggest drop since mid-2011, an unexpected blow that hammered the Australian dollar to its lowest level in more than three years.

17 Jan 2014 - 12:20am

Australian consumer confidence rebounds

Rising home prices have made Australians feel better about their finances. Photo: Reuters

A measure of Australian consumer sentiment rebounded this month as rising home prices made people feel better about their finances while making them more confident about splashing out on big ticket items.

13 Nov 2013 - 2:06pm

Australia’s cenbank ready to act further as mining boom peaks

RBA Governor Glenn Stevens says low interest rates should help sectors such as dwelling and non-mining business investments to recover over time. Photo: Reuters

The cooling of Australia’s long-run mining investment boom will pose a significant challenge, but the central bank stands ready to help support an economy shifting to a new source of growth, the head of the Reserve Bank of Australia said on Wednesday.

3 Jul 2013 - 12:09pm

Australia central bank keeps easing bias, talks down A$

A low inflation number later this month may give scope for the Reserve Bank of Australia to ease further. Photo: AFP

Australia’s central bank kept its main cash rate at a record low of 2.75 per cent on Tuesday and said there might be room for further easing, given the local currency remained too high for comfort.

The Australian dollar duly slipped a third of a cent as the market took the Reserve Bank of Australia’s (RBA) comments as encouragement to sell.

2 Jul 2013 - 1:43pm

Australian inflation gauge stays tame in June: TDMI

The latest inflation survey suggests that rising prices are not a significant concern. Photo: AFP

A private gauge of Australian inflation showed few signs of any acceleration in price pressures in June, suggesting inflation alone would be no bar to a further cut in interest rates if needed.

The TD Securities-Melbourne Institute’s measure of consumer prices was unchanged in June, from May when it increased by 0.2 per cent.

1 Jul 2013 - 2:06pm

Geeks oust miners among Australia’s new rich as boom fades

Mike Cannon-Brookes, co-founder of software firm Atlassian, says the firm has an annual compound growth rate of 30-35 per cent. Photo: Reuters

In a country synonymous with larger-than-life mining tycoons and Outback heroes, the geeks are quietly inheriting the earth.

As coal magnate Nathan Tinkler, the poster boy for Australia’s fading 10-year minerals boom, publicly battles against bankruptcy, software entrepreneurs Mike Cannon-Brookes and Scott Farquhar are riding high.

24 Jun 2013 - 10:16am

Australian dollar may fall more, says reserve bank

Analysts expect rates in Australia to be steady in July. Photo: AFP

The Australian dollar might fall further as export prices eased, the country's central bank said, as it repeated that it had room to cut interest rates again, according to minutes of its June 4 meeting, at which it held the bank rate steady.

19 Jun 2013 - 4:40am

Australia consumer sentiment index bounces in June

A measure of Australian consumer confidence bounced in June after two months of sharp falls, as households became less gloomy on the outlook both for their own finances and the economy.

The poll of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment rose 4.7 per cent in June, recovering somewhat from a 7.0 per cent drop in May.

12 Jun 2013 - 11:43am

Aussie falls into line

Some quick footwork will be required at the Reserve Bank of Australia as the country's economic growth weakens. Photo: AFP

RBA governor Glenn Stevens, speaking as his board left borrowing costs unchanged at a record-low 2.75 per cent on Tuesday, said the inflation outlook gave him scope for further easing and the exchange rate "remains high".

6 Jun 2013 - 4:15am

Australian growth forecast cut to 2.5pc

The Reserve Bank of Australia said it expected growth of 2.5 per cent and inflation of 2.25 per cent for the year to December 31, compared with forecasts in February of up to 3 per cent for both. Photo: AFP

Australia's central bank scaled back its inflation and growth forecasts yesterday, warning of a subdued outlook as the commodities-driven economy transitions away from mining.

The Reserve Bank of Australia said it expected growth of 2.5 per cent and inflation of 2.25 per cent for the year to December 31, compared with forecasts in February of up to 3 per cent for both.

11 May 2013 - 3:08am

Australia cuts key interest rate to record low

The aussie's strength a concern.

RBA governor Glenn Stevens reduced the overnight cash rate target by a quarter percentage point to 2.75 per cent, saying in a statement the Australian dollar's record strength "is unusual given the decline in export prices and interest rates".

8 May 2013 - 5:52am

Australian statistics bureau systems hacked

The Australian Bureau of Statistics revealed on Friday it has been targeted by hackers many times, as they reportedly look to access market-sensitive information before public release.

According to newly declassified documents and internal incident reports obtained by The Australian Financial Review, the ABS has been the subject of numerous attacks over the past four years.

26 Apr 2013 - 3:16pm

Australia keeps rates on hold

Australia’s central bank kept interest rates on hold at 3.0 per cent Tuesday, saying global downside risks appeared to have eased but domestic pressures were lingering.

2 Apr 2013 - 1:58pm