Australia's economy slows in Q3 as stimulus fades

Australia's economy, insulated from the worst of the global downturn by lavish government spending, slowed in the third quarter as the boost from the first phase of the stimulus faded.

Gross domestic product rose 0.2 percent in third quarter from the previous quarter after a 0.6 percent rise in the April-June period, the Australian Bureau of Statistics said Wednesday.

The growth was consistent with the latest forecasts from the Reserve Bank of Australia, the country's central bank, but lower than many economists expected. The figure took growth to 0.5 percent for the year to September.

Commonwealth Bank chief economist Michael Blythe said the effects of cash handouts under the stimulus package had wound down, while spending on schools and other infrastructure that form another part of the plan have not kicked in yet.

"It shows the economy is only just keeping its head above water at the moment," Blythe said.

Australia has weathered the global economic downturn better than most developed countries.

Helping support the economy was a 42 billion Australian dollars ($38 billion) stimulus package and consistent demand for the iron ore and other minerals that Australia exports to nations like China, Japan, and South Korea. Demand for those resources is expected to rise further in 2010.

For Subscribers

FOR SUBSCRIBERSAmerican passenger drafted goodbye texts to her family as Flydubai plane plummeted

FOR SUBSCRIBERSCornell rape allegation pushes embattled New York prosecutor into national spotlight

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

Record low interest rates also played a role, though the central bank moved quickly to raise its benchmark cash rate once it became clear a recession in Australia had been averted.

For Subscribers

FOR SUBSCRIBERSAmerican passenger drafted goodbye texts to her family as Flydubai plane plummeted

FOR SUBSCRIBERSCornell rape allegation pushes embattled New York prosecutor into national spotlight

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

"While economic conditions are clearly improving, today's national accounts show that Australia's economic recovery still has a way to go," Treasurer Wayne Swan told reporters in Canberra.

Swan credited the economic expansion to the government's stimulus spending.

"With the help of fiscal and monetary stimulus, Australia has continued to outperform and outgrow nearly all other advanced economies," he said.