Economy expanding

AUSTRALIA’S economy kicked off the year with stronger than expected growth, official figures reveal, but wages growth and consumer spending remains weak, economists say.

The economy expanded 1 per cent in the three months to March, compared with the previous quarter, according to national accounts published yesterday.

That took the annual rate of growth to 3.1 per cent — its strongest level in almost two years.

The numbers were slightly ahead of market forecasts for quarterly growth of 0.9 per cent and an annual lift of 2.8 per cent.

A strong rise in exports, in particular those for coal, iron ore and liquefied natural gas, accounted for half the increase in gross domestic product in the quarter, figures from the Australian Bureau of Statistics show.

The economy was also supported by strong government spending on transport and infrastructure.