Australia’s economy continued to slow in the December quarter. And without population growth, the economy went backwards.
The economy has also entered a so-called “GDP per capita” recession for the first time since 2006 – thirteen years ago – with the population growing faster than the economy for the last six months, causing living standards to decline.
Economists say the data paints a “bleak picture” of the economy, with the housing downturn and weak business confidence from the end of last year continuing into 2019, so the Reserve Bank will have to reconsider its optimistic outlook.
But economists note this is the first time since 2006 that GDP growth per person has declined for six consecutive months, with population growth accounting for roughly 60 per cent of total growth.
2015 – current