GDP heat map

Every quarter I like to look at the changes in Australian GDP and which categories are responsible for the growth / decline. Each bubble represents a category of GDP proportionate to its size, colours represent the growth rate.

Click the charts for a large version and commentary: 

Graphical representation of Australian GDP or Gross Domestic Product
Click for large version

This quarter the key takeaways include:

  • Federal Government spending (+11% for non-defence, 7% for defence over the year) the only thing keeping GDP above zero.
  • Investment growth was not good, but I was expecting worse. Possibly there are green shoots, but capex surveys and investment forward indicators suggest there is still more downside.
  • State & Local government spending has turned negative – with a low number of property transactions this is likely to remain a feature
Graphical representation of Australian GDP or Gross Domestic Product
Click for large version


Damien Klassen is Head of Investments at the Macrobusiness Fund, which is powered by Nucleus Wealth.

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.

Follow me


  1. Shamelessly stolen:

    Two economists are walking down the street. They come across a large pile of dog shit. The first says to the second, “I’ll pay you a thousand dollars to eat that dog shit.” The second agrees, leans down, and eats his way through the pile of shit. The first writes him a check for a thousand dollars, and they continue on their way.

    A bit further down the road, they come across another pile of dog shit. The second says to the first, “now it’s your turn. I’ll pay YOU a thousand dollars to eat that pile of dog shit.” The first agrees and promptly does so. The second pulls out his check book and writes him a check for a thousand dollars.

    After walking a ways further, the first says, “wait. Did we just eat dog shit for nothing?”

    The second says, “nonsense! We just increased the GDP by $2000!”

  2. Nice graphic….growth underpinned by debt. Initially via private (property) and now public debt is blowing out to maintain the delusion of growth.

  3. I was taught to call that an “Influence Diagram”. No matter. It’s a powerful analytical tool. Great stuff. Please continue your good work treating your readership as intelligent beings (unlike MSM).