“Gradual progress remains to be important progress given the difficult world situations mixed with the affect of upper rates of interest,” he stated.
“We have to do not forget that in direction of the top of the 12 months, Japan and the UK each went into recession.
“Round 1 / 4 of G20 economies have recorded a technical recession or narrowly averted one.
“And it was solely yesterday that the Chinese language authorities stated they count on softer progress to proceed there as effectively.
“At present’s quantity reveals that we aren’t immune from the worldwide financial uncertainty however our financial system continues to develop regardless of all of those pressures.”
Annual GDP enhance reached 1.5 per cent, however inhabitants progress meant per-capita GDP fell by 1 per cent over the past 12 months.
“Progress was regular in December, however slowed throughout every quarter in 2023,” ABS head of nationwide accounts Katherine Keenan stated.
“Authorities spending and personal enterprise funding had been the primary drivers of GDP progress this quarter.”
In what Chalmers stated was “one of many encouraging components”, households elevated their saving price within the quarter, holding onto 3.2 per cent of their earnings, up from 1.9 per cent, as wages and authorities help funds elevated and discretionary spending fell.
Total, the figures paint the image of Australians nonetheless struggling after a string of rate of interest rises and months of accelerating inflation.
Curiosity funds on mortgages proceed to be a big price of dwelling stress, rising 5 per cent for the quarter regardless of solely the one price hike by the Reserve Financial institution as owners rolled over from fastened to variable charges.
Family spending rose marginally by 0.1 per cent, with spending on pubs, golf equipment and catering falling as folks more and more opted to remain at house as a substitute of consuming out.
“Households upped their spending on important objects like electrical energy, lease, meals and well being,” Keenan stated.
“In the meantime they wound again spending in discretionary areas together with lodges, cafes and eating places, cigarettes and tobacco, new car purchases and clothes and footwear.”
