Resource sector impact on Australian growth falls
OREANDA-NEWS. The resources sector was one of the key drivers behind Australia's 2014 economic growth of 2.5pc against a year earlier, although it started showing signs of a weakening contribution.
Australian Bureau of Statistics data showed that mining contributed 8.9 percentage points to Australia's economic growth in 2014, the second-largest contribution from a sector behind telecommunications, media and information with 9 percentage points. Accommodation and food services was third with 8 percentage points.
The contribution of the resources sector to economic growth was only 0.1 of a percentage point in the October-December quarter, which rose by 0.5pc on a seasonally adjusted basis. The mining sector was the 14th largest contributor to economic growth in the final quarter of 2014.
Economic activity in the resources sector during the October-December quarter reflected a 1.1pc rise in economic growth of the iron ore sector and a 0.5pc rise in the oil and gas industry. This was partially offset by a 3.8pc fall in economic activity in the coal mining sector.
But coal mining economic growth in 2014 rose by 6.7pc compared with the previous year, iron ore rose by 16.3pc and oil and gas increased by 10.5pc.
The resources sector accounts for about 8pc of the Australian economy but more than half of its merchandise trade.