There is no private sector growth left, which was nicely pointed out by Greg Jericho:
Over the past year government consumption and investment contributed 1.4% points towards total GDP growth of 1.7%. That effectively means government spending accounted of 79% of GDP growth in the past year – a level only marginally below what happened during the massive stimulus years of the GFC:
It points to an incredibly weak private sector – despite the fact that company profit grew 9.8% in the past year – the strongest growth for nearly two years.
So it’s time to man the Keynesian pump, at the AFR:
The Morrison government is examining which public infrastructure projects can be rolled out faster than scheduled to support the economy through a soft patch.
The government is looking into small-to-medium projects such as roads, railways and local community infrastructure that could begin sooner than originally planned, government sources said.
The potential acceleration of infrastructure spending could complement the government’s planned income tax relief and the Reserve Bank of Australia’s interest rate cut last week that is likely to be followed by another rate cut to 1 per cent in the next couple of months.
Fair enough. Will it be farewell surplus or hello corrupt privatisation deals?