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1. Although Australia GDP fell 1.2 percent from the previous three months, which is the most shrink in the past 20 years, there will be a rebound in the second quarter because the fundamentals are strong. The rebuild in Queensland, strong business investment and low unemployment rate will guarantee the rise.
2. In Australia, household spending accounts for 55 percent of GDP. In comparison, however, the household consumption rate in China decreased from 46.4 percent in 2000 to 35.1 percent in 2009. It is very necessary for the government to boost domestic consumption to ensure sustained growth in China.
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