Australia’s economy posts worst performance since 1992, excluding pandemic
Al JazeeraSep 08, 2024
Australia's GDP Growth Hits 30-Year Low Amid Public Spending
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Above: Pedestrians on Market Street in Sydney, Australia. Image copyright: Lisa Maree Williams/Contributor/Bloomberg via Getty Images
The Facts
Australia's GDP grew by 0.3% in the September quarter and 0.8% over the year, according to the Australian Bureau of Statistics, marking the weakest annual growth since 1991 outside of the COVID pandemic.
GDP per capita declined for the seventh consecutive quarter, falling by 0.3%, while the household saving ratio increased to 3.2%, in part due to tax cuts and government support measures.
Household spending remained flat, following a 0.3% decline in June, with energy bill relief rebates offsetting increases in other spending categories. Gross disposable income rose 1.5% — 0.6% higher than nominal household spending.
The Spin
Left narrative
Despite recent slow growth, Australia should maintain a positive outlook on its economic future, especially regarding the rise in disposable incomes due to wage growth and tax cuts. Public investment in infrastructure and high business investment in machinery and software also echo the mining boom years, paving the way for future productivity gains, while falling inflation signals a welcome relief from high interest rates.
Right narrative
Pro-government analysts can tweak the data any way they like, but the reality for regular Australians is that the standard of living has declined for seven straight quarters with no signs of relief ahead. This is due to the federal government and the states outcompeting the private sector for scarce labor and resources at the expense of taxpayers. When you add high interest rates and taxes into the mix, Australia is headed toward recession.
