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Australia government spending up in Q4, adds slightly to growth

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Australian government spending on operational items rose 0.7 per cent in the December quarter from the previous quarter to an inflation-adjusted A$94.27 billion (S$85.7 billion), the Australian Bureau of Statistics reported on Tuesday.

[SYDNEY] Australian government spending on operational items rose 0.7 per cent in the December quarter from the previous quarter to an inflation-adjusted A$94.27 billion (S$85.7 billion), the Australian Bureau of Statistics reported on Tuesday.

Investment in assets by the government and public enterprises fell 0.4 per cent to A$24.65 billion.

The ABS said general government spending likely added 0.1 percentage points to gross domestic product (GDP) growth in the December quarter, while investment made no contribution.

Public spending accounts for around 24 per cent of GDP, data for which are due on Wednesday. Economic growth was forecast to have risen 0.4 per cent last quarter, according to a median of economists polled by Reuters, nudging the annual pace up to 2.0 per cent.

REUTERS