The June quarter national accounts from the Australian Bureau of Statistics (ABS) revealed that Australia has fallen into a per capita recession following two consecutive quarters of negative per capita GDP growth:
Next week’s national accounts for the September quarter will be released by the ABS, with the nation’s GDP growth again expected to be below population growth.
This would mean that Australia’s per capita recession will have extended into a third quarter.
On Wednesday, the OECD forecast that Australia’s GDP growth will slow to 1.4% in 2024 from 1.9% in 2023, as cost of living pressures force households to cut back on spending and weigh on housing investment.
This is against population growth that will likely be around 2% in 2024, versus close to 2.5% currently:
If the OECD’s growth forecast comes to fruition, it would mean that Australia will have experienced two consecutive years of negative per capita GDP growth, which follows the sharpest decline in household disposable income on record:
It’s a shocking outlook for Australian households, whose living standards are declining at a record pace.
