Invest
FY19: How did the national economy perform?
The Australian economy is continuing its upward trajectory for the 28th consecutive year, despite growth slowing, national figures have shown.
FY19: How did the national economy perform?
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.
RELATED ARTICLES
About the author
About the author
Commodity
Is crypto getting the shaft for a big gold re-polish?
While the spotlight shines on trendy cryptocurrencies, investors evidently haven’t lost interest in traditional and tangible commodities like precious metals. Read more
Commodity
Morrison’s gas-led recovery sees manufacturers ‘held to ransom’ by gas cartel
Australia’s manufacturing sector and its workers are being ‘held to ransom’ by the gas cartel, despite the Morrison government promising cheap gas as a key policy in the COVID-19 recovery planRead more
Commodity
‘Investors should take note’: Gas-led recovery to lead to stranded assets
Australia’s gas-led economic recovery could be relying on inaccurate financial assumptions, new research has revealed. Read more
Commodity
Credibility up in flames as government opens 21 new gas and oil exploration sites
Climate groups are saying the Morrison government lacks any credibility when it comes to climate change after it announced 21 new gas and oil exploration areas. Read more
Commodity
Morrison urged to drop gas-led recovery after new global warning
The International Energy Agency has found that countries like Australia need to transition their energy grid within 14 years to reach net zero, defying Prime Minister Scott Morrison’s gas-led economic ...Read more
Commodity
Taxpayers to bear brunt of Morrison’s $2bn pledge to oil refineries
Taxpayers are set to be on the hook for up to $2 billion over the next decade as the government commits to protecting two oil refineries. Read more
Commodity
Government unveils $1bn energy deal
The Morrison government has announced a $1.1 billion energy and emissions agreement between the federal and South Australian state government. Read more
Commodity
Australia can get rid of coal without prices skyrocketing
Australia’s transition to renewable energy is unlikely to create unaffordable electricity prices or come at the risk to reliability, with policymakers urged to generate the majority of power from ...Read more
Commodity
Is crypto getting the shaft for a big gold re-polish?
While the spotlight shines on trendy cryptocurrencies, investors evidently haven’t lost interest in traditional and tangible commodities like precious metals. Read more
Commodity
Morrison’s gas-led recovery sees manufacturers ‘held to ransom’ by gas cartel
Australia’s manufacturing sector and its workers are being ‘held to ransom’ by the gas cartel, despite the Morrison government promising cheap gas as a key policy in the COVID-19 recovery planRead more
Commodity
‘Investors should take note’: Gas-led recovery to lead to stranded assets
Australia’s gas-led economic recovery could be relying on inaccurate financial assumptions, new research has revealed. Read more
Commodity
Credibility up in flames as government opens 21 new gas and oil exploration sites
Climate groups are saying the Morrison government lacks any credibility when it comes to climate change after it announced 21 new gas and oil exploration areas. Read more
Commodity
Morrison urged to drop gas-led recovery after new global warning
The International Energy Agency has found that countries like Australia need to transition their energy grid within 14 years to reach net zero, defying Prime Minister Scott Morrison’s gas-led economic ...Read more
Commodity
Taxpayers to bear brunt of Morrison’s $2bn pledge to oil refineries
Taxpayers are set to be on the hook for up to $2 billion over the next decade as the government commits to protecting two oil refineries. Read more
Commodity
Government unveils $1bn energy deal
The Morrison government has announced a $1.1 billion energy and emissions agreement between the federal and South Australian state government. Read more
Commodity
Australia can get rid of coal without prices skyrocketing
Australia’s transition to renewable energy is unlikely to create unaffordable electricity prices or come at the risk to reliability, with policymakers urged to generate the majority of power from ...Read more
