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(Points finger in your direction).
Have you ever wondered how the Australian economy is going right now? What our GDP growth rate and headline figures are? WELL?! HAVE YOU???
Well today’s your day to find out!
The Reserve Bank of Australia (RBA aka Oz Central Bank) kindly released an economic snapshot (great info-graphics) of how our Australian economy is tracking right now.
Given the negativity recently in the media and pundits stating we are overdue for a recession – it’s a prudent time to see just how we are doing.
Courtesy of the RBA:
Some solid numbers reported, with reasonable economic growth, low unemployment and inflation tracking within its band.
“G…great…can…can I go now?”
Although the RBA does project that the economy will continue to grow, which should see unemployment levels lower, wage growth to increase (hopefully!) and inflation to rise.
Which would point to a rise in interest rates if and when that does happen.
Interesting to note how the RBA has a box specifically for China – our largest trading partner is vitally important to the Australian economy, now more than ever.
They have an even cooler graphic below which breaks down some of the other economic indicators prevailing in our economy today.
“I really have to go…”
As you can see, the East Coast of Australia (and consequently the major cities there) make up a vast majority of all GDP output. This has been true ever since the country was first inhabited by Europeans back in the 18th Century – and will continue to be true well into the future.
Also it’s pretty cool to note that…
“I have to leave now…”
… It’s pretty cool to note that the housing market makes up far and away the largest slice of household wealth, and household debt.
Which is why the housing market is so fundamentally important to Australians – because it affects all of us.
“Yeah, yeah I knew that, so anyway…”
Like I said earlier, the media and commentators love to remind us all how volatile and rocky our world is, how dangerously tipped we are to fall into another recession, so how stable is our economy really?
Luckily the RBA provided an info-graphic on that too:
It seems from their viewpoint, there is cautious optimism all round.
Low global interest rates has seen economic recovery and growth in the global economy and they believe will continue to do so.
Household debt to income is still too high, but with the recent regulatory changes has seen a moderating level of speculative lending (as reflected in investor credit growth declines).
Our banks are strong and well-capitalized and there is a low number of loans in arrears.
“Ok fine, what does it all mean then?”
It means that contrary to what many may believe – the Australian economy is headed in the right direction.
Although it may not feel like it (we need wages to rise people!) there is reason to feel satisfied with the way the economy is tracking along.
Still plenty of room to improve – debt remains stubbornly high – but overall, a feeling that we are travelling the right way.
But remember, we haven’t had an economic recession since June 1991 – many of us don’t have any living memory of how it was back then.
Inevitably there will be one – that’s just how the way the economy works, but judging from these latest RBA snapshots, hopefully it won’t be for a while!
“A…are we done yet?”
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