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WEAKEST ECONOMY SINCE THE GFC

September 04, 2019

Today’s National Accounts show that annual growth is weak and getting weaker, yet the Morrison Government still doesn’t have a plan to turn things around.

The Australian economy is growing at its slowest pace since the GFC, with annual growth deteriorating further to be half of what it was one year ago.

Annual GDP growth is weaker than the RBA has forecast and weaker than what the Government expected only a few months ago.

This new data shows that on the Liberals’ watch:

  • Growth is just 0.5 per cent for the June quarter and has slowed further to 1.4 per cent for the year.
  • GDP per capita has gone backwards over the year for the first time since the GFC, and annual GDP growth is lower than population growth.
  • The national economy has gone from the eighth fastest-growing economy in the OECD when Labor was in government to the 20th.
  • Wages are growing at only one-sixth the pace of profits.
  • Productivity (GDP per hour worked) has gone backwards over the year.
  • Household spending remains weak, with annual growth slowing further to 1.4 per cent.
  • Total private business investment went backwards in the quarter and over the year. As a percentage of nominal GDP it is around its lowest level since the early 1990s recession.

Right when Australians need and expect a plan from the Morrison Government to get the economy going again all they get instead is finger-pointing and blame-shifting.

Weak growth like this is the inevitable consequence of a Government with a political strategy but not an economic plan.

It is time Josh Frydenberg and Scott Morrison brought forward a budget update to update their forecasts and properly outline an economic program that supports the floundering economy and better safeguards it from global risks.

WEDNESDAY, 4 SEPTEMBER 2019

WE'LL PUT PEOPLE FIRST