07mar02

OPPOSITION leader Simon Crean has welcomed economic growth figures but says high unemployment is still of concern despite the better than expected result.

Australia's growth rate was 4.1 per cent in 2001.

Allowing for seasonal influences, GDP grew a robust 1.3 per cent in the December quarter, the Australian Bureau of Statistics said, attributing the result to solid consumer and investment spending.

"(It's) a good result, but the concern still is that, despite strong growth, unemployment is still stuck at seven per cent," Mr Crean said in Perth.

"The government can't claim credit for good growth unless it's going to translate properly into jobs."

He said he was pleased at the apparent boost in investment born out by the figures, but believed much of the growth had come through consumer and defence spending.

"It's encouraging because it gets us back to where we were before the GST came in," Mr Crean said.

However, he warned that the housing market could be hit badly when the first homeowners grant is cut in the middle of the year and that the economy could also suffer from hidden government expenditure.

"They (the government) still haven't told us the full cost of the Pacific solution. They know it's costing more but they won't tell us the figure," Mr Crean said.

"Now it's those things that are going to impact on the budget bottom line."