Apart from the pandemic years, GDP hasn't been this weak since Jim Chalmers was at school and Oasis was getting together for the first time.
Jim Chalmers had no way to sugar-coat the economy's GDP figure but there was also good news for the government Jim Chalmers had no way to sugar-coat the economy's GDP figure but there was also good news for the governmentEconomic growth in June was pulled down by consumers finding an even tighter notch on the belt: Many stopped going to cafes.Apart from the pandemic years, it hasn't been this weak since Australia was emerging from recession in 1991.
Government spending, by contrast, kept the economy's nose above water. It "contributed 0.3 percentage points, driven by continued strength in social benefits to households," said the ABS.Given the criticism he copped at the time of the May budget for increasing government spending, Chalmers's sense of vindication was understandable.
The RBA had forecast household consumption to grow by 1.1 per cent in the June quarter. Yesterday's figures confirmed it grew by less than half that amount, at just 0.5 per cent. Inflation is taking a painfully long time to come down, mortgage rates are punishing, while the economy remains in a "per capita recession".Shadow treasurer Angus Taylor calls this a "household recession", now into its sixth quarter. Expect to hear more from the Coalition about this "savage reduction in living standards" when parliament resumes next week.
Yesterday's figures showed productivity plunging in the June quarter. Turning that around and finding new drivers of growth should be the priority for both sides of politics at the election.
Recession Jim Chalmers Angus Taylor Economy Rba Interest Rates
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