Wednesday, June 02, 2010

Did Aussie Economic Growth Really Slow?

"Australia's economic growth slows", the media headline says. But that isn't really true. While the official volume growth number did slow, the more meaningful terms of trade adjusted number showed higher growth, increasing from 1.5% (6.1% at an annualized rate) to 1.8% (7.3% at an annualized rate) as terms of trade for Australia improved dramatically.