The Australian economy is continuing its upward trajectory for the 28th consecutive year, despite growth slowing, national figures have shown.
New data from the Australian Bureau of Statistics (ABS) shows that the Australian economy grew by 1.9 per cent for the 2018-19 financial year following a 2.9 per cent jump in 2017-18.
ABS chief economist Bruce Hockman said, “Australia’s economy continued to grow for its 28th consecutive year, albeit at a slow pace, recording the softest annual growth since the global financial crisis.”
Impact on households
In line with a growing economy, households’ personal wealth also increased for the 2018-19 financial year.
However, the national figures show it only increased by $47.7 billion to $10.5 trillion, which was the smallest growth in household wealth in the last decade.
Australia’s labour productivity fell by 0.2 per cent over the same period, leading to the first fall since 2010-11.
This decline in jobs was evident across 10 out of 19 industries.
Household consumption was subdued, increasing by 1.9 per cent for the year, with slowing growth in discretionary spending and “modest” essential spending.
Public v private spending
Money spent in the public sector remained strong, with ongoing investments in health and disability services as well as continued investment in infrastructure spending.
The private sector has not fared so well, with mining’s transition out of investment into production leading to weaker overall spending in development.
Strongest performing sectors
In 2018-19, the largest industries in the Australian economy were mining, financial and insurance services, construction, and healthcare and social assistance. All together, these sectors represented 30 per cent of the national economy.
The mining industry continues to expand, recording its 15th consecutive year of growth, with oil and gas extraction’s transition into production.
Strongest performing states
According to the Commonwealth Bank, Victoria remains Australia’s best-performing economy.
The Commsec state of the states report also showed that NSW has lost second spot to Tasmania due to strong population growth, dwellings starts and equipment investment.
While NSW is now in third position, the reality is that there is very little to separate it from second place Tasmania, with NSW consistently strong across all indicators, according to the report.
The ACT is in fourth spot, supported by a strong job market and solid demand for homes.
Queensland and South Australia remain in fifth and sixth spot, respectively, with both states contending with relatively high unemployment rates. Western Australia remains in seventh position, ahead of Northern Territory.
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