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‘Transition is happening’

The economy has edged closer to trend growth rates, expanding a seasonally adjusted 0.9 per cent in the September quarter, according to the Bureau of Statistics.

Annual growth, at 2.5 per cent seasonally adjusted, was boosted by a 4.6 per cent quarterly increase in exports, concentrated in mining commodities.

The 0.9 per cent quarterly growth was at the upper end of the 0.1 to 1.0 per cent range of forecasts by economists surveyed by AAP.

Household consumption grew at a respectable 0.7 per cent in the quarter, and dwelling construction increased 2.0 per cent over the quarter.

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The growth figures are being held down by a continuing contraction in mining investment, which fed into a 1.0 per cent quarterly fall in fixed capital formation.

The figures come two weeks after the federal Treasury revised its growth forecasts for 2016, down from 3.0 per cent to 2.75 per cent, largely because of slowing immigration.

Treasurer Scott Morrison said the figures showed the transition away from the mining boom was happening, with Australian GDP expanding faster than the G7 nations, the OECD, and at double the rate of growth of Canada.

“These figures will give Australians confidence in the prosperity we have now and in the years ahead,” Mr Morrison said.

“While we’re doing well, our future will depend on how successful we are in improving productivity.”

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