Australia's economy continues expanding

Credit card customers have bolstered the Australian economy, lifting overall spending and increasing gross domestic product (GDP) by one per cent.

According to new figures from the Bureau of Statistics, growth in the last quarter is lower than the 1.4 per cent recorded in the previous three months.

Speaking to Bloomberg, Paul Brennan, a senior economist at Citigroup said that the positive GDP figures will allow Reserve Bank of Australia (RBA) employees to relax over the festive season as they show that the country's economy is relatively resilient – despite the ongoing financial turmoil in Europe.

Part of the drop in GDP growth was the result of reduced government expenditure as ministers try and keep Australia's balance sheet healthy. Elected officials hope that putting Australia in a strong financial position will shield it – and Australian savers and home loan customers – from the worst of the eurozone crisis.

At the end of last month the RBA urged European leaders and banks to take a more proactive approach when it comes to dealing with the debt crisis.

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