Australian economy grows by 3.2%: report

CANBERRA - Australia's economy has recorded a 3.2 percent growth in the year to June 2012, said a report by Australia's leading private sector economic advisory released Monday.

That figure listed in the Deloitte Access Economics Business Outlook ensures ? Australia an outstanding position among developed nations when the United States and the European Union nations are struggling with high unemployment rates and debt crisis.

This year's 3.2 percent growth helped the nation achieve 21 consecutive years of economic growth. The report also forecasts an annual growth rate between 3 percent and 3.4 percent for Australian economy in the next five years.

Wayne Swan, Australian Deputy Prime Minister and Minister of Treasury, said in a statement that the report was another endorsement of Australia's economic strength.

"Australia has solid growth, low unemployment, contained inflation, low interest rates, healthy consumption and a massive investment pipeline ... These economic fundamentals are the envy of the developed world."

Among all 22 sectors studied, the mining investment boom remains the strongest engine driving the economy. However, the report warned that the mining boom may end in two years or so.

The report said that costs in the mining industry are rising fast and potential profits are being dialed down on the back of deflating commodity prices and doubts over demand from Asia.

Chris Richardson, director of Deloitte Access Economics, said Australia's future economic growth is depended on the performances in Europe and China.