Australian money

As the economy slows to GFC levels of ten years ago, public sector spending on things like health, aged care and the NDIS may be providing the fiscal boost that keeps us out of recession.

Although the RBA cut interest rates again this week, this is not reflected in rate cuts from all the banks, nor is there much more room downward for further rate cuts. Low inflation and wages, a soft property market with declining construction starts, low discretionary household spending and low productivity in general all drag on an already weak economy. Spending has gone up in the less avoidable costs of insurance, health care and power. Any money that households have left over tends to be saved rather spent on new things or fun stuff like restaurants and recreation. 

Company profit growth, on the other hand, is relatively healthy, with profits as a share of GDP returning to the high of 29.1 per cent. But as far as money reaching the pockets of working people goes, most of the growth there is coming from government spending which grew by 0.8 per cent over the quarter and 5.1 over the year, well above the 1.8 percent overall growth in GDP.

Full report at ABC: Australia's economy slows to levels last seen during the GFC

More detailed breakdown at Trading Economics Australia GDP Growth Rate

Subscribe to our e-news updates - all the info you need in one place, delivered to your Inbox once a week.