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Australia's gross domestic product rose 1.2 percent in the second quarter, the fastest growth rate in three years. That's mostly because households spent far more than expected, and exports enjoyed an Asian-driven boom.
The Australian dollar jumped after the figures were released. The GDP largely beat forecasts of 0.9 percent, and takes growth for the year to 3.3 percent. That marks Australia's 19th consecutive year without a recession. The country's economy owes much to the strong demand for its resources from two billion people both in China and India. That demand has spurred huge price increases for Australia's two biggest exports - iron ore and coal.
Experts say the growth will prompt the Reserve Bank of Australia to keep an eye on inflation, and potentially lift the key interest rate.
- Australian business profits jump 2010-08-31