AUSTRALIA IN RECESSION?

With the Prime Minister and Treasurer reiterating the message that a Labor Government would lead the Australian economy into recession, growth data released on Wednesday shows Australia has entered into a ‘per capita’ recession.

A ‘per capita’ recession is where GDP per capita shrinks for two consecutive quarters. This can occur while overall GDP is still growing, where the growth in the GDP is at a lower rate than the growth in population. GDP per capita shrank for the final two quarters of 2018, meaning Australia has entered a ‘per capita’ recession

The Hon Josh Frydenberg MP has dismissed the developments saying the country experienced a ‘moderation in growth’ in the latter half of 2018 citing the impact of the drought and the lower investment in mining. Mr Frydenberg has also cited the strong employment figures and the fact the overall economy is still growing.

The Hon Chris Bowen MP has strongly disagreed, telling reporters that Australia has not been in a per capita recession since 2006 and only for the third time since 1991. Mr Bowen said, “This is a damning indictment of the economic stewardship of Scott Morrison and Josh Frydenberg.”