The Australian Bureau of Statistics has released data on the Australian GDP for the March 2012 quarter.
GDP in the March 2012 quarter grew by 1.3 percent, giving Australia an annual GDP growth of 4.3 percent since March 2011. This is a significant increase on the December 2011 quarter, where annual GDP was sitting at 2.5 percent.
The largest contributions to the quarterly change in Australian GDP came from the professional, scientific and technical services industry, which increased by A$627 million or 2.8 percent for the March 2012 quarter. Other strong contributions came from the mining industry up 2.3 percent for the quarter; and the financial and insurance services industry up 1.7 percent.
Annually the largest contributor to the Australian GDP growth of 4.3 percent was the mining industry. This industry has increased its contribution to GDP by A$2.67 billion since March 2011 (up 11.3 percent). This increase represents almost 20 percent of the total growth in the annual Australian GDP figure. But, if this contribution from the mining industry was removed, then the Australian economy would still have had annual GDP growth of 3.8 percent.
This strong growth can be accounted for due increases in GDP from the financial and insurance services industry being up 5.4 percent, the professional, scientific and technical services industry being up 5.3 percent, and the health care and social assistance industry being up 5.5 percent. This growth can largely be accounted for due to the professional, scientific and technical services industry and the financial and insurance services industry both being heavily involved in supporting the mining industry.
This result shows that the Australian economy is being pushed along not just by the mining industry, but also by the highly skilled services industries. However, some say that the economy is now acting like a two speed economy - between mining and mining related sectors, and the rest.