Australian hopes of a quick rebound from the global downturn were dented this morning when official figures showed that the economy had not grown as much as expected in the third quarter.
Data showed the economy, dubbed the 'wonder from Down Under' as it led advanced world in recovering from the slump, grew just 0.2% from Q2, well down from the previous three months when it expanded 0.6%. Economists had expected an expansion of 0.4%.
The annual growth figure was 0.5%, according to the Australian Bureau of Statistics. Treasurer Wayne Swan said the figures were 'pretty stunning' after the worst global slowdown in decades, but he warned that the recovery was still relying on government stimulus.
Australia was the only major Western economy to avoid a recession in the global downturn - thanks to strong resources exports and huge emergency spending. And in October it became the first to ease monetary stimulus measures.
Analysts said the sluggish new growth figure was a reminder that the recovery might not be as straightforward as previously hoped.
Economists also said the figure made Australia's central bank less likely to raise interest rates for the fourth time in a row in its next announcement in February.
