Corporate investment shows resilience in global crisis
Firms continued to invest strongly in the fourth quarter even as the global crisis sank its teeth into profits and confidence.
The resilience in investment greatly increases the chance that Australia’s economy continued to grow in the closing quarter of 2008, one of the darkest for the global economy since the great depression.
Forward estimates of investment were scaled back, but not by the 10 per cent to 20 per cent range expected by some economists.
The data, released by the Australian Bureau of Statistics today, highlights the relative strength of the Australian economy amid the global crisis, raising expectations that its own downturn will be shallow by comparison to major economies.
Economists said forecasts for economic growth in the fourth quarter were likely to be nudged higher.