Australia government spending adds to GDP growth in Q3

[SYDNEY] Australian government spending on operational items rose 0.9 per cent in the September quarter from the previous quarter to an inflation-adjusted A$93.55 billion (S$87.29 billion), the Australian Bureau of Statistics reported on Tuesday.

Investment in assets by the government and public enterprises also rose 1.9 per cent to A$24.13 billion.

The ABS said general government spending likely added 0.2 percentage points to gross domestic product (GDP) growth in the September quarter, while investment contributed 0.1 percentage points.

Public spending accounts for around 24 per cent of GDP, data for which are due on Wednesday. Economic growth was forecast to rise 0.5 per cent last quarter, according to a median of economists polled by Reuters, nudging the annual pace up to 1.7 per cent.

REUTERS