There’s been a lot of talk about a slowdown in Australia, including talk of a recession.
That talk intensified this week after December quarter gross domestic product (GDP) figures showed growth remained very weak in the December quarter.
The December quarter figures show GDP grew just 0.2 per cent and dragging annual growth in 2018 down to 2.3 per cent. Those numbers were below market expectations and below the Reserve Bank of Australia’s (RBA) forecast of 2.75 per cent for the year.
What also alarmed people is that Australia has now entered a ‘GDP per capita recession’: that is, GDP per person in Australia went backwards for two quarters in a row (by -0.1 per cent in the September quarter and by -0.2 per cent in the December quarter). It’s the first time that’s happened since 2006.
But is Australia headed for an actual recession? Read more