The Australian economy grew by just 0.4% in the March quarter. It was a pick up from 0.2% in the December quarter, but over the year the four quarters taken together amounted to only 1.8%.
It’s the first time Australia’s annual economic growth rate has had a “1” in front of it since 2013, and the lowest annual growth rate since the global financial crisis.
Economic growth begins with ‘1’
1.8% is a big step down from the decade average of 2.6% displayed by Treasurer Josh Frydenberg on a chart prepared by his office, and below most estimates of the potential growth rate of the economy.
Real GDP growth
- ^ The Reserve Bank will cut rates again and again, until we lift spending and push up prices (theconversation.com)
Authors: Tim Robinson, Senior Research Fellow (Macroeconomics), Melbourne Institute, University of Melbourne