National Accounts for the June quarter 2018 highlight the strength and resilience of the Australian economy, which has just completed its 27th year of consecutive economic growth, a beaming Frydenberg said this week.

 

According to the Australian Bureau of Statistics, real GDP grew 0.9% in the June quarter, which was above median market expectations. This follows an upwardly revised increase of 1.1% in the March quarter. 

 

The economy grew 3.4% in through-the-year terms, which is the fastest rate of growth since the September quarter 2012 during the height of the mining investment boom, according to Frydenberg.

 

The Treasurer then drilled down to the different sectors' contribution to our legendary national growth story.

 

"By industry, mining investment rose by 5.1% in the June quarter, which was the first rise since the March quarter 2017," he said.

 

"This result reflects investment in machinery and equipment by mining firms and an increase in mineral and petroleum exploration expenditure."

 

Meanwhile new non-mining investment fell 1.7% in the quarter. New private business investment fell 0.2% in the quarter while new machinery and equipment investment was down 1.7% and new engineering construction was down 0.8%.

 

Hogsback can see a pattern emerging here.

 

It seems that once again, it is mining that is doing the heavy lifting in keeping the Australian economy ticking over while economies in the rest of the world, who aren't blessed with our abundant resources of coal and iron and ore, are barely keeping their heads above water.

 

On the exploration front, mining is also spending up.

 

Exploration is the mining equivalent of research and development and it shows a commitment to the longer-term development of mining.

 

Coal exploration expenditure increased nationally to $155.7 million in 2017-18, which was up from $120.4 million from the previous corresponding period, according to data from the Australian Bureau of Statistics.

 

New South Wales increased total exploration investment by 60% to $230.7 million in 2017-18 while total investment in exploration in Queensland was $442.1 million last financial year - an $80 million or 22% increase - compared to 2016-17.

 

So not only is the mining industry helping our economy continue on its growth trajectory, it is also providing a sustainable flow of employment and development in the future through exploration.

 

Hogsback reckons that our new Treasurer - who was formerly the energy minister - should remember this when his party formulates its national energy policy in the wake of the demise of the National Energy Guarantee.  

 

If he can keep mining growing he should be able to keep dollars circulating around the national economy.