Official figures show that growth in Australia's economy slowed to 0.5% in the first quarter of 2010. The growth came despite the withdrawal of large-scale stimulus measures, raising hopes that its recovery is self-sustaining.
Treasurer Wayne Swan called the data, which meant a 2.7% annual growth rate, a 'solid outcome' that reflected Australia's performance as the only advanced economy to defy recession during the global downturn.
The Australian Bureau of Statistics said gross domestic product (GDP) was up 0.5% from the previous quarter, underpinned by an 11.6% jump in public investment and 0.6% growth in household spending.
The economy expanded 2.7% over the 12 months to March, while growth for the December quarter was revised up from 0.9% to 1.1%.
Government spending on buildings and infrastructure - part of a $50 billion stimulus - was the main factor in the growth driver. But the slowdown on growth was blamed on the unwinding of stimulus measures and a series of interest rate hikes.
Mr Swan said GDP would hit 4% in 2011-12, as Australia 'defied global economic gravity' to outperform the world's major economies. He said Australia's resilience, thanks to Asian resource exports and the stimulus spending, meant it would be debt-free by 2012-13 - three years earlier than expected.
