Aussie GDP roars back on free money!

Via the ABS:

  • The Australian economy rose 3.3% in seasonally adjusted chain volume measures
  • Through the year GDP fell 3.8%
  • The terms of trade rose 0.7%
  • Household saving ratio decreased to 18.9% from 22.1%

Twas’ mostly a reopening private sector:

Except when we realise it was all publicly funded. Thank JobKeeper:

Government consumption still boomed:

As households spent like drunken sailors:

And saved like nuns!

Investment was stuffed:


But catch-up growth is fun:


Wildly distorted numbers courtesy of wild public spending. It will take another few quarters to wash this out before we get a clear picture of the underlying economy.

David Llewellyn-Smith
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