The Australian economy grew 0.1% in the first three months of 2024, and 1.1% in the last year, according to data released by the Australian Bureau of Statistics this week.
Annual growth of 1.1% is the lowest annual figure since December 2020.
GDP per capita fell for the fifth consecutive quarter, this time by 0.4% and has now fallen 1.3% in the last year. In other words, population growth is the predominant reason for what little growth the economy is currently experiencing.
At the same time, households are saving less. Only 0.9% of their income for the March quarter was saved, down from 1.6% in the last three months of 2023. This contributed to total savings by households remaining below 2% in the year, the lowest figure since December 2008.
Interest payments on mortgages increased by 3.9% which, while still high, is the lowest quarterly rise in the last two years.
