There has been scant reporting of the fact that the Australian economy has plunged into a per capita recession by Labor incompetence, as revealed in the most recent economic set of figures released by the RBA.
A per capita recession was summarised by one person on Senator Hanson’s X thread as: “This is an economic term where even if the economy grows slightly, its growth is overrun by inflation. So citizens buying power goes backward even if the economy grows.”
While the aggregate economy showed a modest growth a closer examination reveals a more complex story, with per capita terms registering a concerning second consecutive decline of 0.3%.
Per Capita GDP Decline:
The ‘per capita’ metric provides a more accurate reflection of the economic well-being of individual Australians because it emphasises the importance of sustainable growth for all citizens.
Investment and Consumption Trends:
At the aggregate level, investment emerged as a significant contributor to economic growth, adding 0.5 percentage points. This was propelled by a massive 8.2% increase in public spending, while private investment also saw a very slow rate of 0.6%. Consumption, particularly household consumption, remained positive, albeit with a slight slowdown in growth (+0.1%).
A noteworthy factor affecting Australia's GDP growth is the Albanese Government's unprecedented immigration program. The country saw a record net influx of 502,000 visa holders (excluding tourists) in the year leading up to July. Of these arrivals, student visas accounted for 297,000. This immigration surge has undoubtedly impacted the economic landscape, and not in a positive way!
Despite the growth, it is evident that the economy's pace is not rapid enough to absorb the influx of newcomers. Because of Labor's gross and outrageous mass immigration program, the Prime Minister has undermined the whole Australian economy.
This situation has serious repercussions, leading to a squeeze on living standards, the division of the economic pie, and a shortage of rental homes and infrastructure.
The ABS's latest report on Australia's economic performance underscores the complexity of the nation's economic landscape. While aggregate figures may suggest growth, a deeper analysis reveals the importance of addressing per capita GDP declines, managing immigration dynamics, and ensuring that economic growth is inclusive and sustainable for all Australians. As the nation navigates these challenges, informed policy decisions and public discourse will play a crucial role in shaping the future of Australia's economy.