5 years ago
WEAK ECONOMY SLOWS UNDER THE MORRISON GOVERNMENT
JIM CHALMERS MP
The National Accounts confirm that growth has slowed in the September quarter, slowed since the election and almost halved since Josh Frydenberg became Treasurer.
Economic growth is still too weak and too narrow, and too many indicators are going in the wrong direction.
After the release of last quarter’s figures Morrison claimed that the economy “would improve in the next quarter”, but quarterly growth has actually slowed.
These growth figures are well below average, well below forecasts and well below what is needed to get wages growing again.
Today’s data shows that on the Liberals’ watch:
Economic growth is still too weak and too narrow, and too many indicators are going in the wrong direction.
After the release of last quarter’s figures Morrison claimed that the economy “would improve in the next quarter”, but quarterly growth has actually slowed.
These growth figures are well below average, well below forecasts and well below what is needed to get wages growing again.
Today’s data shows that on the Liberals’ watch:
- Quarterly growth has slowed to 0.4 per cent in the September quarter, down from 0.6 per cent in the previous quarter.
- Annual growth is only 1.7 per cent, well below budget forecasts and well below trend.
- The economy is barely growing faster than the population and GDP per capita didn’t grow at all in the quarter.
- The private domestic economy has gone backwards for two quarters and has experienced the biggest decline since the Global Financial Crisis.
- Consumption is growing at its slowest pace since the Global Financial Crisis in quarterly and annual terms, increasing by only 0.1 per cent in the quarter and 1.2 per cent over the year.
- Total private business investment continues to go backwards, declining by 0.9 per cent in the quarter and down 1.1 per cent over the year. As a percentage of nominal GDP it is around its lowest level since the early 1990s recession.
- Wages are growing at nearly one-fifth the pace of profits growth.
- Productivity declined in the quarter and over the year.
This set of numbers is humiliating for Scott Morrison and Josh Frydenberg.
Weak growth like this is the inevitable consequence of a Government with a political strategy but not an economic plan.
The Morrison Government has ignored repeated calls for responsible, proportionate and measured stimulus to support the economy from the Reserve Bank, the business community, economists, experts and Labor.
It’s well passed time for Josh Frydenberg and Scott Morrison to develop a comprehensive plan to support the floundering economy, boost wages and lift productivity.