The latest release by the Australian Bureau of Statistics on the Australian National Accounts for the September-quarter 2024 paints a grim picture of the Australian economy. With GDP growth of just 0.3 per cent in the quarter and 0.8 per cent over the year, the economy is struggling to keep up with the necessary growth rate to prevent rising unemployment. GDP per capita has fallen for the seventh consecutive quarter, indicating a decline in material living standards, especially for the lower end of the income distribution. The only source of positive GDP growth is coming from government expenditure, while household consumption remains flat.

FAQs:

Q: What was the GDP growth rate in the September-quarter 2024?

A: The GDP growth rate was 0.3 per cent in the September-quarter 2024.

Q: How has GDP per capita performed over the past year?

A: GDP per capita fell by 1.5 per cent over the year, signaling a decline in average income.

Q: What was the main contributor to GDP growth in the September-quarter 2024?

A: Government expenditure, both recurrent and investment, was the main contributor to GDP growth in the September-quarter 2024.

Q: How has the household saving ratio changed recently?

A: The household saving ratio rose to 3.2 per cent in the September-quarter 2024, up from 2.4 per cent.

Q: What is the outlook for unemployment based on the current growth rate?

A: At the current growth rate, unemployment is expected to rise due to the lack of expansionary fiscal and monetary policies.

Conclusion

The Australian economy is facing challenges with weak GDP growth, declining GDP per capita, and flat household consumption. Government expenditure is the only source of positive growth, but it may not be sufficient to prevent rising unemployment. It is crucial for policymakers to consider more expansionary fiscal policies to support economic growth and maintain living standards for all Australians.