Today’s announcement by the Australian Bureau of Statistics that GDP grew by 0.5% seasonally adjusted for the quarter and 2.2% over the last year shows the Australian economy remains sluggish.
“Today’s figures confirm that GDP in Australia is still stuck in the slow lane. The last time the Australian economy grew above its long run trend was back in 2012 when Wayne Swan was still Treasurer,” said Dr Richard Denniss, Chief Economist at the Australia Institute.
“The Government’s agenda of cutting taxes over the last 7 years has done nothing to boost wages, productivity growth or business investment. Business investment remains low and, with slow wages growth, price growth and consumer spending it is unlikely that any further tax cuts will reverse this trend.
“The recent US experience under President Trump has demonstrated that even massive tax cuts for business does virtually nothing to help the economy.
“The ABS makes clear that two of the biggest contributors to Australia’s GDP growth last quarter were a decline in imports and an increase in business inventories. Both of these numbers provide more evidence of a slowing economy not a growing economy.”