Australia's economy accelerates in Q4

The pace of economic growth in Australia topped the analysts' expectations in the fourth quarter. According to the RBA consumers spent more and saved less for the last three months of the last year. Thus, the growth of consumer spending supported domestic market. Compared with the third quarter, Australia's GDP advanced 0.8%, while it gained 2.8% on year. The experts anticipated the indicator to add 2.5%. The Australian economy shows a more sustainable recovery. From October to December the quarrying sector, rental, hiring, and real estate services contributed equally to the GDP growth. Exports volumes and capital investment of the public sector increased, whereas private investments decreased. The Australian dollar rose on the news 40 points against its U.S. peer to 89.97 U.S. cents. However, the Aussie failed to retain its positions and retreated to the level of 89.55 cents. The local unit added 0.11% since the beginning of the day. Notwithstanding better GDP figures, the pace of economic growth remains below the potential level of 3%. The reason behind it is the slowdown in country's mining due to fewer investments. Nevertheless, the RBA expects stronger GDP growth this year and further weakening of the Australian dollar.