
It is fair to say that the Reserve Bank of Australia (RBA) would already be cutting interest rates if not for the nation’s low unemployment rate of 3.9%.
Australia’s economic growth is insipidly weak, with aggregate GDP expanding by only 0.8% in the year to Q3 2024, the slowest annual growth rate since the early 1990s recession outside of the pandemic.
Per capita GDP is worse, shrinking for seven consecutive quarters—the most prolonged decline on record.
The Australian economy’s growth rate in Q3 2024 was well below the RBA’s projections, as illustrated below.
Usually, the decline in GDP would be associated with a commensurate
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