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Australia Q4 GDP gains at 2.4% annual pace vs 1.9% expected: Reuters

An aerial general view of shipping containers at The Port of Melbourne in Melbourne, Australia.
Scott Barbour | Getty Images
An aerial general view of shipping containers at The Port of Melbourne in Melbourne, Australia.

Australia's fourth-quarter gross domestic product rose at a 2.4 percent annual pace, beating an expected gain of 1.9 percent, Reuters said, citing data released by the Australian Bureau of Statistics on Wednesday.

Reuters said Australia's economy rebounded sharply in the fourth quarter as exports boomed while consumers and government lifted spending, extending the resource rich nation's 25-year streak without a recession. For the fourth quarter, GDP rose 1.1 percent, compared to an 0.7 percent increase seen.

"So the third quarter dip was only a pothole after all and not the end of the world. There's not a lot to complain about in these numbers, with a bounce in consumer spending the big surprise," Michael Blythe, chief economist at Commonwealth Bank told Reuters.

"The main story is the boost to incomes from export prices. Nominal GDP rose 3 percent alone, the sort of result you only saw at the peak of the mining boom. That change to the dynamic for national income is great for profits and tax receipts, and maybe some will even trickle down to workers. It should also give the ratings agencies pause for thought."

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