The Squiz 

The latest Bureau of Stats data has confirmed our economy is growing at the slowest rate in 3 decades. Yesterday’s gross domestic product (GDP) figures – which add up the value of everything a nation produces – show the economy grew 0.2% between April and June, taking last financial year’s rate to a sluggish 1%. That’s broadly in line with the forecasts, but there’s concern that government spending fuelled the growth we did see. The Bureau’s Katherine Keenan says outside of the pandemic years, our “annual financial year economic growth was the lowest since 1991-92 – the year that included the gradual recovery from the 1991 recession”.

Oh no not the r-word…

Hold your horses – we’re not in a recession (when economic growth goes backwards for 2 consecutive quarters) – but if you slice the data per capita (aka per person), economic growth was down for the sixth consecutive quarter, falling 0.4%. That’s notable because many analysts reckon that’s a better indicator of how our economy and Aussies are faring – particularly when cost of living pressures is a hot topic. Others point out that conditions are patchy across the country depending on how our disposable income differs and where we live… All up, economist Callam Pickering described the June data as “depressing but also expected”. 

So what’s the response been?

With a federal election on the way, expect the major parties to keep butting heads over our ongoing economic woes… Yesterday, Coalition Treasury spokesperson Angus Taylor said it “looks, feels, and smells like a recession”. No surprise – Treasurer Jim Chalmers disagrees… He got on the front foot earlier this week, saying it’s the Reserve Bank’s interest rate rises that are “smashing the economy”. And yesterday, he said “global uncertainty” is also a factor, but denied government spending is a problem. That last part remains a point of contention, though, with Reserve Bank Governor Michele Bullock pointing the finger in that direction last month. She’s said cutting interest rates isn’t on the agenda until inflation is back within the 2-3% target. It’s currently at 3.8%…