AUSTRALIAN EXPORTS HELPING TO BOOST GDP
The strong contribution of exports to
the growth in Australia's gross domestic product (GDP) in the
fourth quarter of 1986 was a significant and welcome feature of
the data, private economists polled by Reuters said.
    Real GDP rose 1.1 pct in the fourth quarter of 1986, after
rising 0.2 pct in the third quarter and falling 1.1 pct a year
earlier.
    Equally significant was the decline in both private and
government spending, they said.
    Exports of goods and services rose 13 pct in the fourth
quarter, while imports rose only 2.9 pct, Statistics Bureau
figures show. Consumer spending declined 0.6 pct and government
spending by 0.2.
    Bob Edgar of the Australia and New Zealand Banking Group
Ltd said the government's aim of reducing the current account
deficit by boosting exports and lowering consumption to cut
imports appeared to be working.
    However, he cautioned that care must be taken to keep
growth restrained because if it accelerated too fast imports
would increase and worsen the balance of payments.
    Andre Morony of Bankers Trust Australia Ltd added the
result was positive because growth was export-driven.
    But he said the GDP rise came as no surprise given the
growth in exports disclosed in other statistics.
    The economists' comments were echoed by Treasurer Paul
Keating in a statement issued in Canberra.
    Keating said the figures showed encouraging trends for a
reduction in the current account deficit, notably the decline
in domestic demand and the strong increase in exports.
    A further 3.5 pct fall in the terms of trade in the quarter
underscored the need to continue restraint in wages, prices and
public sector spending and borrowing to improve Australia's
competitiveness, he said.
    "It is clear that through the continued application of that
strategy Australia will make the necessary adjustments in its
external accounts and return to a more sustainable growth
pattern," he added.
 REUTER
