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Exports, not stimulus, responsible for avoiding recession

Exports, not stimulus, responsible for avoiding recession article image

Opposition leader Malcolm Turnbull believes it was the strength of Australia's exports, not the Federal Government stimulus package, that resulted in yesterday's surprisingly growth figures. Australia avoided entering a technical recession yesterday when the Australian Bureau of Statistics revealed gross domestic product grew by 0.4 percent. Prime Minister Kevin Rudd attributed yesterday's result to the government's stimulus package: "Had we pursued the strategy recommended by Mr Turnbull not to invest and not to provide payments, cash payments to pensioners, carers and others, Australia would be in recession today." However, Turnbull pointed out that net exports contributed the most to the result. "Does the Prime Minister agree that the positive GDP figure for March is almost entirely a consequence of a substantial decline in imports and an increase in exports, providing a 2.2 percent contribution to GDP growth from net exports?" he said. "If so, could the Prime Minister explain to the House how his spending policies over the last six months have influenced an increase of exports and a decline in imports?"

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