Invest
‘The economy is coming back’: Frydenberg
Treasurer Josh Frydenberg has told reporters that the latest national account figures should give Australians “optimism and hope” as Australia has emerged from its first recession in nearly three decades.
‘The economy is coming back’: Frydenberg
Treasurer Josh Frydenberg has told reporters that the latest national account figures should give Australians “optimism and hope” as Australia has emerged from its first recession in nearly three decades.
The Australian Bureau of Statistics confirmed on Wednesday, 2 December, that Australia has emerged from a recession, with the biggest quarterly expansion since 1976.
Household spending was the main contributor to a rise in economic activity, with the ABS reporting a 7.9 per cent increase in spending on both goods and services.
Spending on services rose 9.8 per cent, driven by spending on hotels, cafes and restaurants, health and recreation, and culture as containment measures were relaxed.
Commenting on the figures, Mr Frydenberg said “the Australian economy is coming back”.
“Facing a once-in-a-century pandemic that has caused the greatest economic shock since the Great Depression, Australia has performed better on the health and economic fronts than nearly any other country in the world.”
Mr Frydenberg pointed to other positive economic data – including rising house prices and building approvals, as well as strong jobs growth – as evidence that the recovery was well underway, while acknowledging that the recession had caused significant damage to many households.
“There are a lot of Australian families that will be in a pretty tough financial situation and a number of Australians are still out of work.”
“Technically, Australia’s recession may be over, but Australia’s economic recovery is not.”
“There is a lot of ground to make up and many Australian households and many Australian businesses are doing it tough – very tough,” the Treasurer said.
He also noted the importance of maintaining the health crisis, with Victoria being the only state or territory not to experience economic growth for the quarter due to a second lockdown.
“Victoria – a quarter of the national economy – has only just begun its recovery after the devastating second wave,” Mr Frydenberg said.
“In these national accounts, every state and territory saw strong growth in the quarter except for Victoria, where it contracted.
“If Victoria had grown in line with the rest of the nation, national growth in the September quarter would have been 5 per cent – not 3.3 per cent.”
The Treasurer noted that since the health pandemic started, the goal has been to keep Australians in work.
“Over the last five months, 650,000 jobs have been created, the effective unemployment has come down from a peak of 14.9 per cent to 7.4 per cent.
“Participation rate is at 65.8 per cent, approaching its pre-crisis level, and the Reserve Bank has said the JobKeeper program has saved at least 700,000 jobs.”
However, shadow treasurer Jim Chalmers used the job figures to attack the Morrison government, stating September growth is little comfort to the 1 million Australians who are currently out of a job.
“For many Australians, what looks like a recovery on paper will still feel like a recession,” he said.
“What really matters is not one quarterly GDP number on a page, but how Australians are actually faring and whether they can provide for their loved ones.”
“The Morrison government fails to understand that 2.4 million Australians are still unemployed or underemployed, and many small businesses are under enormous pressure.”
“Today’s data shows there is a long way to go to undo the damage of the recession, with the crisis exacerbating longstanding weaknesses in the economy,” Mr Chalmers concluded.
RELATED ARTICLES
About the author
About the author
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
