Despite Australia’s GDP growth having the weakest year-end outturn since the September quarter of 2009, the effect of the numbers have been misinterpreted, according to a government investment body.
According to the Queensland Investment Corp (QIC), those comparing the Australian economy today to the global financial crisis are misinterpreting the available information.
By September 2009, the worst of the GFC was over, with positive growth for most developed nations occurring, the QIC said.
While there is no doubt that the Australian economy is undergoing a soft patch, and risks to the outlook are plentiful, it is premature to make comparisons with the GFC, it said.
The QIC was also quick to highlight that despite weaknesses, the economy is in a stronger position than it has been previously.
The unemployment rate peaked at 6.3 per cent in 2014, inflation hit its low point in 2016, and consumer spending experienced three quarters of negative growth over the last three quarters of 2008.