MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="----=_NextPart_000_012F_01D71047.D2348A20" This is a multipart message in MIME format. ------=_NextPart_000_012F_01D71047.D2348A20 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: 8bit WEDNESDAY 3 MARCH 2021 GDP LIFT PUTS AUSTRALIA ON THE INTERNATIONAL LEADER BOARD “The strong lift in GDP in the December quarter puts Australia on the international leader board in terms of economic performance in 2020,” Innes Willox, Chief Executive of the national employer association Ai Group, said today. “The growth in GDP occurred despite a large reduction in fiscal stimulus in the quarter. For example, JobKeeper payments in the December quarter were one third of the level paid in the September quarter. (However, note that some of the previous stimulus payments received earlier were spent in the December quarter.) “The fall in GDP of 1.1 per cent in 2020 compares very favourably with the Reserve Bank’s expectations of a fall of 6 percent in August, 4 percent in November and 2 percent in February. “Approximately half of the December quarter lift in national GDP of 3.3 percent came from Victoria which recorded growth of 6.8 percent over the three months. This is in stark contrast to the previous quarter in which Victoria was the only state or territory to experience a fall in final demand (down by 1%). “This points to the rebound element of GDP in the September and December quarters and this will be less of a driver in future GDP performance. “The rebound element is also evident in investment. “Total investment was up 3.6% in the quarter but down 0.9% for the year: * Private sector investment was up 3.9% in the quarter including a rise of 8.9% in machinery and equipment (which was nevertheless 4.3% lower for the year) and a rise of 4.1% in dwellings in the quarter (but only up by 0.6% for the year). * Public sector investment was up 2.5% for the quarter - with state and local government up 4.5% and national down 1%. Over 2020, Public sector investment was up 1.8%. “With the rise in machinery and equipment investment encouraging, we are still well short of anything that can be called a recovery in business investment and most of the increase in the quarter is likely to have been postponed repairs and replacements,” Mr Willox said. Further comment Tony Melville - 0419 190 347 The Australian Industry Group (Ai Group) is a peak employer organisation in Australia which represents the interests of thousands of businesses in an expanding range of industry sectors including: manufacturing; engineering; construction; food & beverage processing; transport & logistics; information technology; telecommunications; labour hire; and defence. Ai Group's influence crosses all areas of workplace development and sustainability. aigroup.com.au This email has been sent to you as a member of Ai Group or the media and forms part of our communications services to you. Go to the Ai Group website to receive other information services or opt out. Unsubscribe . ------=_NextPart_000_012F_01D71047.D2348A20 Content-Type: text/html; charset="UTF-8" Content-Transfer-Encoding: quoted-printable
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WEDNESDAY 3 = MARCH 2021


GDP LIFT PUTS AUSTRALIA ON THE = INTERNATIONAL LEADER BOARD


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=E2=80=9CThe strong lift in GDP = in the December quarter puts Australia on the international leader board = in terms of economic performance in 2020,=E2=80=9D Innes Willox, Chief = Executive of the national employer association Ai Group, said = today.

=E2=80=9CThe growth in GDP = occurred despite a large reduction in fiscal stimulus in the quarter. = =C2=A0For example, JobKeeper payments in the December quarter were one = third of the level paid in the September quarter. =C2=A0(However, note = that some of the previous stimulus payments received earlier were spent = in the December quarter.)

=E2=80=9CThe fall in GDP of 1.1 = per cent in 2020 compares very favourably with the Reserve = Bank=E2=80=99s expectations of a fall of 6 percent in August, 4 percent = in November and 2 percent in February.

=E2=80=9CApproximately half of = the December quarter lift in national GDP of 3.3 percent came from = Victoria which recorded growth of 6.8 percent over the three = months.=C2=A0 This is in stark contrast to the previous quarter in which = Victoria was the only state or territory to experience a fall in final = demand (down by 1%).=C2=A0

=E2=80=9CThis points to the = rebound element of GDP in the September and December quarters and this = will be less of a driver in future GDP performance.

=E2=80=9CThe rebound element is = also evident in investment.

=E2=80=9CTotal investment was = up 3.6% in the quarter but down 0.9% for the year:

  • Private sector investment was = up 3.9% in the quarter including a rise of 8.9% in machinery and = equipment (which was nevertheless 4.3% lower for the year) and a rise of = 4.1% in dwellings in the quarter (but only up by 0.6% for the = year).
  • Public sector investment was up = 2.5% for the quarter - with state and local government up 4.5% and = national down 1%. Over 2020, Public sector investment was up = 1.8%.

=E2=80=9CWith the rise in = machinery and equipment investment encouraging, we are still well short = of anything that can be called a recovery in business investment and = most of the increase in the quarter is likely to have been postponed = repairs and replacements,=E2=80=9D Mr Willox said.


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Further comment
Tony Melville - = 0419 190 = 347
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The Australian Industry Group (Ai Group) is = a peak employer organisation=C2=A0in Australia which represents the = interests of thousands of businesses in an expanding range of industry = sectors including: manufacturing; engineering; construction; food & = beverage processing; transport & logistics; information technology; = telecommunications; labour hire; and defence. Ai Group's influence = crosses all areas of workplace development and sustainability. aigroup.com.au
=
This email has been sent to you = as a member of Ai Group or the media and forms part of our = communications services to you. Go to the Ai Group = website to receive other information services or opt out. Unsubscribe.
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