Australia’s economy has defied the economic naysayers yet again, growing at a year-on-year pace of 3.0% in the year to December, the fastest pace since the September quarter 2012.
The latest beat – quarterly growth of 0.6% compared to forecasts for an increase of 0.4% – now means that it has been 19 quarters since the economy contracted.
It extends Australia’s run without technical recession – defined as two consecutive quarters of negative growth – to 98 quarters, bringing the nation closer to the record held by the Netherlands of 103 that came to abrupt halt in the global financial crisis.
As the chart below shows, it has now been 24.5 years since Australia has been in recession.
Population growth and China’s economic emergence, along with a degree of luck, has certainly played a role. However, there is no disputing that its been an epic, and to other developed nations, enviable, run of uninterrupted economic growth.