Australia falls into per-capita recession as growth tumbles
By Eryk Bagshaw and Shane Wright
UpdatedMarch 6, 2019 — 3.20pmfirst published at 12.12pmAustralia's economy has slumped into a per-capita recession for the first time since 2006, leaving the country relying on population growth to propel its economy and raising questions about the Coalition's economic management months out from the federal election.
The dollar dropped sharply to a two-month low of $0.70 by midday as economists slashed their predictions for official interest rates to reach a record low of 1 per cent by September.
Treasurer Josh Frydenberg announces Australia is on track "to record our twenty eighth year of consecutive economic growth, a remarkable achievement."
Prime Minister Scott Morrison has repeatedly said economic growth will be weaker under Labor, but the final two results of this term of government show the Coalition will lead Australia back to the polls struggling to lift a slowing economy.
The brakes were slammed on in the second half of the year, with the economy dropping from a 3.8 per cent annualised place to 0.9 per cent after June.
AdvertisementThe Morrison government has pledged to reduce the migration rate but figures released on Wednesday show that without migrants fuelling consumption, Australia's economic growth would be going backwards.
The Australian Bureau of Statistics data shows the economy grew by 2.3 per cent over the year and 0.2 per cent in the December quarter - below market expectations and well short of Reserve Bank forecasts of 0.6 per cent.
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