According to data from the Statistical Office for Gross Domestic Product, in the June quarter the economy grew by 0.4%, while on
an annual basis the growth of the economy stands at 2.1%.
Last year the growth rate of the economy stood at 2.7%.
However, the latest figures are not surprising considering high inflation and interest rate hikes.
Growth in the economy over the last three months is due to population growth — especially migration — in government spending and exports.
However, households have reduced their spending, that is, how much they spend. Both successive interest rate hikes and inflation — and the high cost of living in general — have led many to “tighten the belt”.
And this is shown by the latest data from the Statistical Office: household expenditure increased by only 0.1%.
As Federal Economy Minister Jim Chalmers said, households have cut discretionary spending in order to be able to cover their basic and tranches of loans.
“People have also reduced home renovations and are saving less. Household savings have fallen to 3.2% - the lowest point since 2008,” he said. Chalmers commenting on the evidence.
Read more in the audio accompanying the article.
