Australian Economy

Pru Goward tries to make sense of the world.

Australia’s recent productivity growth has been among the worst in the advanced world, as illustrated below by Justin Fabo from Antipodean Macro.

Throughout last year, CBA published data showing that older Australians had increased their spending significantly above inflation, whereas younger Australians had cut back hard on spending.

The Q1 national accounts, released earlier this month, showed that the private sector economy remains locked in recession. Australia’s per capita GDP declined by 0.2% over the quarter, the ninth decline in 12 quarters. It was also the longest (but not deepest) decline in GDP per capita in modern recorded history.

By Harry Ottley, Economist at CBA TheAustralian unemployment rate remained steady at 4.1% in May.

Thursday’s Q4 2024 population data from the Australian Bureau of Statistics (ABS) revealed that “natural increase” (i.e., the number of births minus deaths) fell to only 105,200 in 2024, close to the lowest level on record.

Westpac with the note.

The monthly growth in Seek advertised salaries has shown hints of stabilisation but is still trending lower.

The blueprint for how to fix Australia’s tax system was spelled out 15 years ago by the Henry Tax Review.

The Australian Bureau of Statistics (ABS) has released the May labour force report, which reported a steady unemployment rate of 4.1% despite the loss of 2,500 jobs.

Australia’s annual R&D spending has also fallen to only 1.68% of GDP, well below the OECD average (3%) and the lowest among developed nations.

Australia’s unemployment rate is currently 4.1%, a historically low figure. The low unemployment rate has been driven by the boom in non-market (government-funded) roles, such as those related to the NDIS.

Harry Ottley, economist at CBA, has written an excellent report on the Q1 2025 Labour Account from the Australian Bureau of Statistics (ABS), which illustates the extraordinary growth in non-market (government-aligned) jobs.

Treasurer Jim Chalmers has declared war on Australia’s poor productivity growth, which has slumped to developed-world lows.

Westpac with the note.

Australia’s manufacturing sector hit a record low share of GDP in the latest Australian Bureau of Statistics (ABS) national accounts.

According to The Guardian, Australia’s tobacco excise rate has tripled in the past decade, from 46c to $1.40 per cigarette, accounting for $28 of the average $40 price for a packet of 20 cigarettes.

The Commonwealth Grants Commission (CGC) reduced Queensland’s share of goods and services tax (GST) revenue by $2.4 billion in March due to the state’s strong revenue from coal royalties.

Policy makers and economists are concerned that the retirement of the Baby Boomer generation and an ageing population could see the nation’s workforce heavily diminished in the future.

Anybody who believes that meeting Labor’s 82% Renewable Energy Target (RET) by 2030 is achievable or affordable is delusional.

Markets are half-panicked by the latest Middle East war.

I am philosophically opposed to taxpayers providing subsidies for private car transportation. Most of these subsidies flow to higher-income earners. Therefore, these subsidies serve as a prime example of the reverse Robin Hood phenomenon, where the rich benefit at the expense of the poor. Electric vehicle (EV) subsidies are exceptionally costly and egregious.

By Belinda Allen, Senior Economist at CBA The CommBank Household Spending Insights index lifted by 0.5% in May after a flat outcome in April.

Australia’s cafe industry is on the verge of collapse.

The Victorian government has set a delusional target to deliver 95% renewable energy by 2035. These targets are legislated in the Renewable Energy (Jobs and Investment) Act 2017 (Vic), namely: 25% by 2020 (achieved) 40% by 2025 65% by 2030 (previously 50%) 95% by 2035 (new).