Australian economy grows 2.7% during 2009

Official figures have revealed Australia’s economy grew 0.9% in the October to December period, while on an annual basis the economy expanded 2.7%.

In comparison, the UK, Germany and Japan all contracted by around 5% in 2009, while the US shrank by 2.4%.

Australia’s Federal Treasurer Wayne Swan described the country’s growth as “the envy of the developed world”.

Australia is one of the few developed economies not to have fallen into recession like its counterparts throughout the world.

The economy only contracted in the final three months of 2008. The definition of recession is two consecutive quarters of negative growth.

The Australian economy has benefited from an increase in commodity prices, while exports have received a boost due to demand from China for its iron ore and other raw materials.

Australia was the first economy to raise rates from a 50-year low as the economic downturn eased. Other major economies opted for lower interest rates to boost their economies.

Earlier this week, the Reserve Bank of Australia (RBA) raised interest rates from 3.75% to 4%.

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