The Treasurer has attempted to hang his hat on wages growth as the Australian economy posts its seventh straight quarterly drop in GDP per person.
As higher for longer interest rates and inflation continue to bite, Aussies have been hit with more bad news on the economic front.
The data shows GDP grew 0.3 per cent thanks largely to government infrastructure projects and energy rebates. For the 12 months until September 2024, the economy grew by 0.8 per cent. “The most encouraging aspect and the most important aspect of today’s national accounts is what it says about real incomes growth,” Mr Chalmers said.
“Australians would be much worse off and growth in our economy would be even weaker without our responsible and balanced approach to the budget and without our cost-of-living support,” the Treasurer said.ABS head of national accounts Katherine Keenan said the economy grew for the 12th quarter in a row but had continued to slow since September 2023.
“Clothing and footwear rose in response to unseasonably warm weather and essential spending grew moderately with continued growth in rent, health and education services.” “In their judgment, aggregate demand by household, businesses and governments is still ahead of aggregate supply. While the growth rate wasn’t strong in September, it was an uptick from the first half of the year when growth in the June quarter was only 0.2 per cent.
“The RBA’s latest forecasts from the November Statement of Monetary Policy suggest an expectation that growth will pick up to 1.5 per cent by December 2024 before climbing to 2.3 per cent by June 2025,” he said. Managing expectations ahead of Wednesday’s national accounts data, the Treasurer said the trends were expected to continue into the near term.
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