GDP Growth Rate YoY
(b) Trend series suspended as at March 2019 due to the impacts of COVID-19. GDP Growth Rate YoY
19. Australian economic growth slowed in late 2017, undermined by weaker construction and exports, offsetting a strong rebound in household spending.According to the Australian Bureau of Statistics (ABS), GDP grew by 0.4% in seasonally adjusted chain-volume terms in the December quarter, undershooting forecasts for an increase of 0.5%.September quarter GDP, previously reported as an increase of 0.6%, was revised up to 0.7%.With the quarterly GDP missing fractionally to the downside, the year-on-year growth rate slowed to 2.4% from 2.9%, below the 2.5% level expected by both the RBA and economists alike.Compared to 2016, the economy grew by 2.3% in 2017.In per capita terms, real GDP was flat during the quarter and up 0.8% over the year. Reference
“We think that data’s today highlights the need for policy reform that can help boost the productive capacity of the economy.
. not applicable or not available (a) Data revised from July 2004 to December 2013. na not available np not published.
Link Copied! Weakness in the latter was driven by a sharp drop in engineering construction, overriding strength in non-residential building. Australia. Construction of dwellings and non-dwellings also dragged, detracting 0.1ppts and 0.4ppts respectively. Federal government consumption rose by 3.1% over the quarter, outpacing a 0.7% increase for the states.Public sector investment also chipped in, rising by 2.9%, adding 0.2ppts to GDP.“This increase was due to an asset transfer from the private sector,” the ABS said.Business investment on machinery and equipment also contributed 0.1ppts to growth.Those positives were partially offset by higher imports and lower exports which lopped 0.1ppts and 0.4ppts respectively off the quarterly figure. Over the last 8 years, GDP in Australia was decreasing on average by 0.94% each year, although before that, it grew from 376.71 billion US dollars in 2001 to 1,569.1 billion US dollars in 2012. Inventories made no contribution to GDP, as expected.This table from the ABS shows the contribution of of individual components in expenditure terms.Helping to fuel the sharp recovery in houshold consumption, the ABS said employee compensation rose by 1.1% over the quarter, driven primarily by a strong increase in employment rather than increased wages.“The increase in wages is consistent with stronger employment data reported in Labour Force, as well as a lift in the growth rate in the wage price index observed over the past two quarters.” Hockman said.Compensation of employees grew 4.8% over the year, the strongest rate of growth since June quarter 2012.Over the same period, Australian employment grew by more than 3%, underlining that the increase was largely underpinned by more workers rather than steeper wage increase.Indeed, real net national disposable income — regarded as a measure of the real living standards for Australians by the ABS — was flat over the quarter and up 1.5% over the year.However, for individual Australians, it fell by 0.3% in per capita terms over the quarter and was flat over the year.The household savings ratio — measuring the proportion of income being saved — ticked up fractionally, lifting to 2.7% from 2.5% in the September quarter.While a small increase, it still sits well below the 10% plus levels seen at the onset of the GFC. GDP Growth Rate YoY
For information see Explanatory Note 12 & 13. TEForecast
For the moment, there is little buffer for households to help boost spending in the absence of a pickup in income growth.Stephen Walters, Chief Economist at the Australian Institute of Company Directors, described the result as “underwhelming”, pointing out that not only did living standards go backwards in the December quarter, but productivity was also poor.“Real net disposable national income per capita, the best indicator of national living standards, fell,” he said.
In the financial year 2018–19, Australia generated $60.8 billion in direct tourism gross domestic product (GDP). It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Other sectors include: manufacturing (11 percent) and construction (9.5 percent). “Also, productivity dipped in the quarter, having been unchanged in the previous quarter.”To Walters, this suggests that for Australia’s economic growth to be sustained, productivity will almost certainly have to improve.“Absent another boom — and it’s not clear what the genesis of that will be — the next phase of our growth probably will be sourced from much-harder-won gains in productivity growth,” he says.“These gains usually stem from sustained reform, which has been largely absent of late.”Gareth Aird, Senior Economist at the Commonwealth Bank, says that means Australia’s politicians will have to get to work.“Productivity growth is weak.
This is the most recent list of Australian states and territories by gross state product (GSP) and GSP per capita. In 2018, its nominal GDP was $782.48 billion, while its GDP based on PPP was $1.86 trillion.
GDP per hour worked, a measure of productivity, actually fell by 0.1% in 2017,” he says.“Australia appears to be in a low productivity phase.
“There were falls in electricity, gas and other fuels (-3.1%) and food (-0.7%).” Government consumption also lifted by 1.7%, adding an additional 0.2ppts. GDP Growth Rate YoY
Tourism in Australia continues to be a driver of growth for the Australian economy, with domestic and international tourism spend totalling $122 billion in 2018-19.
HCI and GDP Per Capita PPP (log scale, horizontal axis) Productivity relative to benchmark of complete education and full health. The Trading Economics Application Programming Interface (API) provides direct access to our data. It was the weakest growth rate since the third quarter of 2009, as bushfires, drought and the coronavirus pandemic hit the economy. .