CIO

Australian economy grew 2.1% in FY11

The Australian economy swelled 2.1% in FY11, in the 20th consecutive year of GDP growth, according to new ABS statistics.

There have now been 20 consecutive years of GDP growth, the Bureau said. But GDP per capita increased by a more modest 0.6% during the year.

Australia's total net worth - or the difference between total assets and total liabilities - meanwhile grew by $62.7 billion in FY11 to around $8.09 trillion in current prices.

Real net disposable income grew by 6.3% over the year, thanks largely to a strong recovery in terms of trade.

Consumption expenditure grew 3.2% during the year, contributing 2.4 points to GDP growth. Household consumption expenditure alone contributed 1.9 percentage points.

But at the same time, the household saving ratio – calculated by deducting household expenditure from net disposable income – increased to 10% from 8.9% during the year.

In terms of industry, most sectors' contribution to GDP increased, with particular gains recorded in the agriculture, forestry and fishing and the professional, scientific and technical services sectors.