Australia’s economy grew by 0.8% in the year to September, marking the weakest growth since the early 1990s, outside of the COVID-19 pandemic.
Treasurer Jim Chalmers said the economy is “weighed down by interest rates, cost-of-living pressures, and global uncertainty”.
Shadow Treasurer Angus Taylor said the figures showed “a complete and utter failure” by the Government.
What is GDP?
Gross Domestic Product (GDP) is the monetary value of all goods and services produced by a country over a period of time.
It’s a mechanism used to assess the health of a nation’s economy and to identify if a country’s economy is growing or shrinking.
If a country’s GDP is negative for six months in a row, many economists say the economy is in a recession, or “shrinking”.
Latest
On Wednesday, the Australian Bureau of Statistics (ABS) published new data that shows GDP rose 0.3% in the three months to September, and 0.8% over the year.
This was down from the annual rate of 1% recorded in the June quarter.
This means Australia’s economy is recording some of its slowest growth since the early 1990s, outside of the COVID-19 pandemic.
Per capita
Another way of analysing economic growth is by looking at GDP per capita — the average economic output per person.
Australia’s GDP per capita has gone backwards every quarter since March 2023.
Chalmers said he “acknowledged” that “people are under substantial pressure”.
Govt remarks
Chalmers called the slow growth figures “unsurprising”.
“Demand is weaker, not stronger, than most economists forecast,” Chalmers said.
“Our economy is growing but very slowly, weighed down by interest rates, cost of living pressures and global uncertainty.”
The Government has repeatedly said it’s aiming for an economic “soft landing”, moving away from high inflation (rising prices) and interest rates.
Opposition
Shadow Treasurer Angus Taylor told reporters on Wednesday: “These numbers are a score card for the Albanese Labor Government. And they get a fail.”
He said the slow growth figures reflected “the nightmare faced by Australian households and businesses”.
