Australian GDP shambles on

The ABS is out with September QTR national accounts and has missed expectations of 0.7% quarterly and 3% annual at 0.6% and 2.8%:

It was weak everywhere except business investment:

Dollar thumped. Bonds bid. Much more to come.


    • At a 3.1% population increase, GDP per capita is probably static.

      Real GDP per capita is probably negative.

    • Yep, probably means lower interest rates, lower dollar, increased profits. We’ll deal with the trickle down effects later. Risk on!

      • Yep, that was the point I was trying to make sarcastically. By the way, how long do subscribers have to put up with the Reusa-wanna-be grub who calls himself “The Horrible Scott Morrison MP”? I understand the commercial need to have a big number of readers, but in the apparent (understandable) absence of an editing person to ensure the quality and intellectual standard of your offering, wouldn’t “pay or troll somewhere else” be a good policy?

  1. Real GDP per capita is negative if inflation 1.4% and population 1.6%. (my estimates)
    Now if the real numbers confirm this it is time to get the Tele onto it. A front page photoshop job of MT with an axe attacking an Australian middle class family!

    • The figures are ‘real’ so are already adjusted for inflation. Population growth, ie, per capita figures are a different matter. Still positive per capita, but much less so.

  2. We are hooked on growth; fixated by it. For the rest of this week it will be ‘growth this and growth that’.

    Gross domestic product, or ‘GDP’, is a proxy for a country’s output and our GDP growth has been remarkably consistent over recent decades. But few stop and ask why?

    And GDP measures two types of growth – genuine or artificial. The first is good and the second type of growth is bad, especially in large or prolonged dosages.

    Genuine growth is largely driven by an increase in real productivity and a bigger sustainable market. Bad growth is primary driven by increasing amounts of debt being injected into the economic system. All growth has its limits, but more so for the artificial kind.

    Remember debt is consumption brought forward. Growth is the assumption that consumption will continue.

    Revisit above.

    • The Horrible Scott Morrison MP

      When will you realise that you’re saying a whole bunch of stuff the electorate won’t understand and can’t concentrate long enough to learn? GDP up, house prices up, debt rates low, means re-election for the Superstar Treasurer.

      • You forgot to mention that Population growth is the panacea to all know issues we have. So long as we continue to have strong population growth everything’s gonna be fine.

  3. the dollar has been bouncing around the 0.76 mark for ages now. nothing seems to kill it, nor drive it higher (at least for long).