Official figures show Australia`s economy grew 1.0 percent in the first quarter of this year, up 3.1 percent in the 12 months to March.
The increase was slightly higher than expected, after forecast growth of 0.9 percent in the first quarter and 2.8 percent a year.
Strong growth in exports, particularly coal, iron ore and liquefied natural gas, accounted for half of Australia`s GDP growth, according to data released Wednesday by the Australian Bureau of Statistics, (ABS).
After the latest GDP data, the Australian currency rose to 76.56 cents against the dollar, up from 76.35 cents before the data were released.
Australia`s economy has outpaced expectations with strong 1% growth in the first quarter, at an annual rate of 3.1%.
Commodity exports were the main driver of growth in the first quarter, according to ABS.
Bruce, the bureau`s chief economist. "Export growth accounted for half of GDP growth, reflecting strong growth in exports of mining goods," Hockman (Bruce Hockman) said.
Production in the mining sector rose 2.9% as coal, iron ore and liquefied natural gas increased.
That spurred a 6% jump in corporate profits in the first quarter, the strongest gain in the past year.
"the growth in profits is in line with the strong growth in mining exports and the increase in terms of trade this quarter," Hockman said.
Increased profits have also prompted companies to invest more in machines and equipment, including outside the resources sector.
Government consumer spending rose 1.6 percent in the quarter, up 5.1 percent over the past year, and also contributed to GDP growth, although public investment spending declined slightly from a very high level.
However, while businesses and governments are spending, consumers` wallets have been closed.
Household consumption grew by less than 0.3 percent in the first quarter, and even that small increase was driven by basic spending on goods and services.
Household consumption grew by 2.9% in the past year.
Despite weak spending growth, household savings fell further to a 10-year low of 2.1 percent.
Tasmania was the strongest performing state, with 2 percent growth, 1.9 percent growth in Victoria and 0.7 percent growth in new states. Western Australia contracted by 1.1% and the Northern Territory by 2%.
Throughout the report there are signs of a sharp increase in Australian incomes at the beginning of the year. Employees` compensation rose 5.1 percent in the year to the first quarter, the strongest result since June 2012, according to ABS.
Finance Minister Morrison (Scott Morrison) said the rise in employees` compensation was an important driver of the tax base.
Nominal GDP grew 2.2 percent, the strongest in five quarters, while real per capita disposable income, which many economists use as a measure of living standards, rose 1.5 percent.
