The Australian economy could shrink to where it was when Malcolm Turnbull narrowly won the 2016 election, with new figures revealing sales across almost every industry have collapsed, dragging down incomes | swrighteconomy
The Australian economy could shrink to where it was when Malcolm Turnbull narrowly won the 2016 election, with new figures revealing sales across almost every industry have collapsed, dragging down workers' incomes.
Despite the huge drops in sales, company operating profits soared by a record 15 per cent with the bureau reporting this was due to subsidies such as JobKeeper and the government's cashflow for employers program. JPMorgan senior economist Tom Kennedy said the figures pointed to the economy contracting by 7.2 per cent in the June quarter. The previous record for negative growth is 2 per cent, set in the June quarter of 1974.A 7.2 per cent contraction equates to $34 billion, taking quarterly GDP back to where it was in June 2016.
While JobKeeper has channelled more than $40 billion back into the economy, there are signs households are now starting to struggle despite the financial support.The number of people who said they would be able to raise $2000 in a week for something important fell to 77 per cent, down from 88 per cent in mid-June.
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