Australia’s economic growth continues to weaken

The Australian economy’s growth rate has continued to weaken, growing by a less-than-expected 0.3 per cent in the September quarter and 0.8 per cent through the year.

However, when it comes to growth per capita, the economy actually went backwards by 0.3 per cent.

Treasurer Jim Chalmers said the growth of the Australian economy continues to be “positive but weak”.

“Our economy is growing but very slowly, weighed down by interest rates, cost of living pressures and global uncertainty,” the treasurer said in a statement today.

“Growth at 0.3 per cent in the September quarter and 0.8 per cent through the year is below historical averages and below market expectations.

“Today’s release shows growth is below what most economists expected, demonstrating that demand is weaker, not stronger than most economists forecast.”

Household spending remains flat despite recent tax cuts and pay rises.

“Household consumption has barely moved for the better part of 2024, did not grow in this quarter and only grew by 0.4 per cent through the year,” he added.

“Household consumption has barely moved for the better part of 2024, did not grow in this quarter and only grew by 0.4 per cent through the year.

“Households are restraining their spending, with discretionary consumption falling 1.1 per cent through the year. This is unsurprising given interest costs have tripled since rates started rising before the election.”

The figure is still beyond the RBA’s 2 to 3 per cent target.

This month the RBA signalled that it would want to observe a sharp decline in inflation sustained over more than one quarter of data before cutting the cash rate from 4.35 per cent.