Analysts expect today’s national accounts will show economic growth has accelerated to its fastest pace in a year-and-a-half, with most of the growth coming from mining exports.
Economists are tipping that gross domestic product (GDP) grew by 0.9 per cent in the March quarter.
That would see the annual rate of growth quicken to 3.2 per cent – the fastest pace in 18 months and a return to Australia’s average growth rate.
Mining exports are expected to be a major driver, but HSBC chief economist Paul Bloxham believes they were not the only source of growth
“Exports are expected to be very strong and combine that with a fall in imports and the net export contribution is going to be significant to GDP growth in the quarter,” he said.
“But we do think we’re likely to see also positive growth in household consumption, positive growth in residential investment.”
Mr Bloxham says this is a positive sign that Australia’s economy is successfully compensating for the fall in resources activity.
“We are managing to rebalance Australia’s economy from mining investment led growth to non-mining investment growth relatively smoothly in the scheme of things,” he said.
The momentum may not be maintained though – Mr Bloxham expects growth to settle slightly lower through the rest of the year.