Strong GDP growth needs to be 'protected' say Morrison

AUSTRALIA'S economy has grown by more than 3 percent over the past year but Treasurer Scott Morrison shows the new figures show 'fragility' that needs to be protected.

The latest GDP figures show the economy grew by 1.1 percent n the first quarter.

Growth was driven largely by a surge in export volumes, which contributed 1 percentage point out of the 1.1 per cent quarterly growth.

Household consumption also added to the better-than-expected result,contributing 0.4 percentage points.

The largest detractor from growth was business investment, which fell 2.2 per cent due to less engineering construction and less spending on new buildings, the ABC reported.

By industry, production growth was mainly down to mining, up 6.2 per cent, but financial and insurance services also grew 1.8 per cent, there was a 1.5 per cent rise in accommodation and food, and 0.9 per cent increase in arts and recreation.

Mr Morrison said the result was due to strong jobs growth over the past year and a 'modest improvement in wages'.

He said there had been 300,000 news jobs, and 50,000 for young people over the past year.

"While the numbers are welcome, we are conscious of the fragiliities that exist in these numbers and our economic plan is designed to address those fragilities,'' Mr Morrison told reporters.

"The most significant is the need to boost earnings, company profits is a negative and we need to ensure that we support businesses to earn more.

"Our company tax cuts, the tax cuts for small and medium sized businesses - because that is what will occur over the next term of parliament, that is who gets the tax cuts over the next term of parliament and particularly the 100,000 businesses who employ 2.2 million Australians with a turnover between $2 million and $10 million.

"They get a tax cut on 1 July this year. They will be able to invest more. Access to the pay as you go concessions with the tax office. They're not multinationals. You won't find a Google CEO amongst any of those businesses. You will find mums and dads running businesses,'' he said.

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