Gross home product declines 1.5 p.c on per capita foundation following successive rate of interest hikes.
Australia’s economic system has posted its worst efficiency in additional than 30 years, excluding the primary yr of the COVID-19 pandemic.
Australia’s gross home product (GDP) expanded by simply 0.2 p.c within the April-June interval and 1 p.c during the last yr, the Australian Bureau of Statistics stated on Wednesday.
Excluding 2020, annual development was the slowest since 1991-92 – when Australia was recovering from a recession.
On a per capita foundation, which accounts for the impact of report ranges of immigration, GDP fell 0.4 p.c on a quarterly foundation – the sixth consecutive decline – 1.5 p.c yr on yr.
Earlier than the pandemic, Australia loved an unprecedented three-decade streak of uninterrupted financial development, rising from the 2008 international monetary disaster as the one main economic system to keep away from recession.
Australia’s post-COVID restoration is struggling after the central financial institution raised rates of interest 13 instances between Could 2022 and November 2023 in an effort to chill inflation that had been working at a quarter-century excessive.
On Sunday, Treasurer Jim Chalmers stated the successive rate of interest hikes have been “smashing the economic system”.
Whereas the weak financial knowledge is prone to spur requires the Reserve Financial institution of Australia to chop charges, inflation rose barely within the June quarter and stays effectively above the central financial institution’s goal of 2-3 p.c.
Rising discontent over the economic system has drained assist for Prime Minister Anthony Albanese’s Labor Social gathering authorities.
In a Newspoll opinion ballot launched on Monday, 41 p.c of respondents stated they authorized of Albanese’s efficiency in contrast with 54 p.c who disapproved – the Australian chief’s worst efficiency since his election in Could 2022.
In separate polling by RedBridge, simply 24 p.c of Australians stated they may identify a single factor that had improved their lives since he entered workplace.