The Australian economy is tepid, with consumer spending the weakest in ten years, business investment shrinking, and economic growth too weak to cover population growth.
Were it not for very strong growth in export income and the biggest surge in government spending in 15 years, the economy would have shrunk.
The treasury believes the Australian economy is capable of growing at a sustained annual pace of 2.75%. The growth rate in the past financial year of 1.4% reported on Wednesday is only half that.
Not since September 2009 has the gap between what the Australian economy is capable of and what it has been delivering been so wide. 2009 was the year of the global financial crisis.
Real GDP growth
- ^ 2.75% (www.smh.com.au)
- ^ 1.4% (www.abs.gov.au)
- ^ Beatles toured Australia (www.smh.com.au)
- ^ The Lucky Country (www.penguin.com.au)
- ^ ABS 5206.0, Table 35 (www.abs.gov.au)
- ^ ABS 5625.0, Table 2 (www.abs.gov.au)
- ^ up to nine months (www.rba.gov.au)
- ^ spoke about introducing one (theconversation.com)
- ^ 'Back yourself' Treasurer Frydenberg tells business. But it's not that simple (theconversation.com)
- ^ formal written agreement (rba.gov.au)
Authors: Peter Martin., Visiting Fellow, Crawford School of Public Policy, Australian National University