- Financial system grew by simply 1 per cent
Australia’s financial system is now rising on the slowest tempo for the reason that early Nineteen Nineties recession exterior of a pandemic.
Gross home product grew by simply 1 per cent within the yr to June – nicely beneath the long-run common of three per cent.
Outdoors of the 2020 pandemic, this was the slowest annual tempo of financial progress for the reason that 1991 recession – the final financial downturn sparked by aggressive rate of interest hikes.
Australia is not but in a technical recession, outlined as two consecutive quarters of financial contraction.
But it surely has been in a per capita recession since mid-2023, with output for each Australian shrinking by 1.5 per cent over the past monetary yr.
Whereas productiveness grew by a weak 0.5 per cent over the yr, within the June quarter it fell by 0.8 per cent over three months.
The price-of-living disaster is actually biting with family spending falling by 0.2 per cent, marking the worst downturn since mid-2021 when the Delta outbreak led to lockdowns in Sydney and Melbourne.
Australia can also be seeing a document variety of enterprise insolvencies, following the Reserve Financial institution’s 13 rate of interest rises in 2022 and 2023.
Australia’s financial system is now rising on the slowest tempo for the reason that early Nineteen Nineties recession
Prime Minister Anthony Albanese’s Labor authorities is because of face voters by Might subsequent yr, with Reserve Financial institution Governor Michele Bullock final month ruling out charge cuts earlier than Christmas.
Variable mortgage repayments have surged by 68 per cent since Might 2022, with the RBA money charge at a 12-year excessive of 4.35 per cent.
Julia Gillard misplaced Labor its majority in 2010, following the International Monetary Disaster, even when annual financial progress was at a way more respectable 3.3 per cent.
Even in higher financial instances, she was compelled to kind a minority authorities with the Greens and independents, with opinion polls exhibiting the same destiny awaits the Albanese Authorities in 2025.
Weak financial exercise has historically made it arduous for Labor governments to get re-elected with Paul Keating solely prevailing on the 1993 election as a result of his Liberal opponent John Hewson had proposed a hated 15 per cent GST.
Prime Minister Anthony Albanese ‘s Labor authorities is because of face voters by Might subsequent yr, with Reserve Financial institution Governor Michele Bullock final month ruling out charge cuts earlier than Christmas
