Australian GDP growth slows to worst levels since 2009
The pace of Australia's economic growth has fallen to levels not seen since 2009, according to figures released Wednesday from the Australian Bureau of Statistics (ABS).
In the June quarter of 2019, Australia's gross domestic product (GDP) rose by 0.5 percent in seasonally adjusted chain volume terms, making it a 1.4-percent increase over the entire financial year.
Although net exports rose by 0.6 percent for the three-month period, and mining profits were up 10.6 percent, the household sector remained subdued with growth of just 0.4 percent.
Adding to the soft data, dwelling investment also hit a sour note, recording a fall of 4.4 percent over the quarter.
"Strength in mining related activity was seen across a number of measures in the economy," Chief Economist for the ABS Bruce Hockman said.
"The external sector drove GDP growth this quarter, while growth in the domestic economy remains steady."
Some financial analysts pointed out that with population growth climbing faster than the rate of economic growth, Australia is technically in a per capita recession.
"Today's number indicates, in a per capita sense, the economy went backwards in the last 12 months," Westpac Chief Economist Bill Evans told the Australian Broadcasting Corporation.
"Key parts of the economy, such as business investment, dwelling construction and the consumer, are really off."
He said the fundamental problem for the economy is weak wages growth. "As the consumer becomes more cautious, so business becomes more cautious in terms of the investment plans."
On Tuesday, the Reserve Bank of Australia elected to keep the country's record low interest rate of 1.0 percent on hold, but it's widely predicted there will be at least one other rate cut before the end of this year.