Australian economy will grow this year

Australian economy will grow this year

Australian economy is expected to grow over 3% in 2004. The increase is attributed to the recovery in agriculture sector. In the fourth quarter of 2003, housing industry assisted economy to grow 4% compared to the same period of previous year. The investments in iron ore and mining sectors also affect the growth in Australian economy. Rising iron ore demand from China encourages BHP Billiton and Rio Tinto Group to invest more than $1.5 billion on mines and ports in Western Australia. BHP Billiton is planning to expand the annual capacity of its Pilbara mill from 100 million tons to 110 million tons by the end of 2004. For this project, $111 million is expected to be spent. In addition, exports, showing an upward trend as the Australian Dollar appreciated against US Dollar in the last year helped Australian economy grow.