GDP slows in June quarter
Posted
Updated
Slowing: The economy expanded at the weakest pace in over three years in the June quarter (ABC: file photo)
Australia's economic growth is continuing to slowly decline, signalling the likelihood of additional interest rate cuts later this year.
In the June quarter the economy expanded at the weakest pace in more than three years, with growth rising by 0.3 per cent from the previous quarter.
Gross domestic product grew 2.7 per cent from a year earlier.
The Australian Bureau of Statistics (ABS) revised March quarter growth up to 0.7 per cent from an initial 0.6 per cent.
The June quarter results are slightly below estimates, and reinforce yesterday's decision by the Reserve Bank to cut interest rates by 0.25 per cent to 7 per cent.
Today's GDP figures underscore the RBA's view that a slump in consumer spending, business confidence and the share market provides "more scope'' to cut borrowing costs.
'Solid'
Treasurer Wayne Swan described the figures as solid but said families are still facing tough times.
"You can see in the figures that sky high oil prices have had a particular impact when it comes to overall consumption," he said.
"We are determined to be upfront and open to the Australian people about the challenges we face as a nation."
Mr Swan says that while the overall outlook is positive, there is cause for concern because the figures show that productivity continues to be weak.
"I think even when you look at them on a yearly basis, in this data there is cause for concern," he said.
"The Government has consistently highlighted the poor productivity performance in the Australian economy in recent times."
Rate cut prospects
Economist Joshua Williamson of TD Securities believes confirmation of slower growth keeps the prospect of consecutive interest rate cuts alive.
"It's sticking to the Reserve Bank story, we do have softness in household consumption, expenditure and strength in other areas," Mr Williamson said.
"This is on track for the Reserve Bank to deliver a rate cut in October and another one before the end of the year and then they'll pause and have a look at things."
In another sign of a slowdown, Australia vehicle sales slumped in August.
New vehicle sales dropped 10.1 per cent in seasonally adjusted terms in August, from July, hit by high petrol prices and sagging consumer confidence.
Monthly data from the Australian Federal Chamber of Automotive Industries showed sales fell 7.9 per cent in original terms in August.
The prospect of additional rate cuts pushed the Australian dollar close to a one year low.
About 12:00pm AEST, the Australian dollar was 0.14 per cent weaker at 83.25 US cents.
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Comments (109)
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Rob:
03 Sep 2008 1:02:33pm
Heck of a lot better than what we see happening in Britain/Germany/USA etc.
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Greg h:
03 Sep 2008 1:10:52pm
I would love to see the treasury budget estimates.
It wont be suprising if Aust returns back to deficit spending.Agree (0) Alert moderator
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Rob:
03 Sep 2008 1:20:07pm
Hmm. Liberal party senate blocking of 6 Billion dollars in budget measures makes them look like they are desperate to make it happen.
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Greg h:
03 Sep 2008 1:55:33pm
The economic slowdown under Labor means company profits down and this means lower tax receipts.
This is back to deficit spending under Labor.
Economics 101 for Labor supporters, you cannot have budget surplus is a slow economy and you cannot tax your way to prosperity.Agree (0) Alert moderator
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Ann:
03 Sep 2008 1:56:52pm
These are NEW taxes to plug the hole KRudd et al dug for themselves after their rash election spending they are determined to fulfil even after emasculating CSIRO etc with their spending cuts. They will be INFLATIONARY - another reason to block them.
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bemused:
03 Sep 2008 2:29:28pm
yeah, must be that... The Libs couldn't actually think the alcopop tax will not curb youth binge drinking and is just a cash grab...
Not that i think they're fit to govern either.
I can understand how plants got elected senators in the US...Agree (0) Alert moderator
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Kathy:
03 Sep 2008 1:24:21pm
I wonder what is the real figure gonna be after minus the alcopop and luxury car taxes.
Poor the opposition, alp is gonna blame the opposition again :DAgree (0) Alert moderator
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Greg h:
03 Sep 2008 1:58:38pm
Tax increases does not equate to budget surplus!
Tax increase cut consumption which flows across and leads to lower tax revenues in general!
Economics principles eludes the Labor govt, it cannot tax its way across to prosperity.Agree (0) Alert moderator
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David:
03 Sep 2008 2:15:28pm
I reckon there will continue to be a very healthy surplus - in fact current estimates are for a surplus beyond projection, so the labor partisan rhetoric in this blog stands up to little scrutiny.
The fact is Senates of both politcal persuasion have routinely held up and opposed certain budget measures. Labor opposed tax cuts and many compliance measures.
Whatever way you spin it, it was silly for Labor to talk down the economy when it was well known there was a global slowing, petrol prices were rising and inflation was forecast to rise and then come back to the RB band.
We have a basically sound economy, not the least due to resources, but also a low public debt position. I suppose Swanny was responsible for that too?
I think mortage payers have a right to wonder whether RB overeacted (egged on by novices in government), mugged the economy and are now putting rates back roughly where they should have been.
Now. lets see the lost cost of living promises kept...Agree (0) Alert moderator
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BJ:
03 Sep 2008 1:48:31pm
It's time to end the blame game once and for all.
The real answer is that all of Australia's economic woes comes down to the Liberal Party and their reckless and opportunistic economic vandalism over the last 11 years.
They are even continuing it in Opposition, putting the Budget in peril and talking down the economy.
The Liberal Party is where the real blame lies. Let's not forget it or argue about it any more. It's settled.Agree (0) Alert moderator
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James A:
03 Sep 2008 2:11:04pm
The problem is the Liberals didn't go with the Joseph approach and save for the bad times during the good ones.
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David:
03 Sep 2008 2:32:09pm
They did. they cleared net debt, introduced the future fund, ran successive budget surpluses, reduced individual and company tax rates to give revenue back to the taxpayers, introduced incentives for private savings (superannuation reform). Frankly, James A, you need to stop swallowing the ALP propaganda hook line and sinker and look at the facts. Isn't it time to put the current Government under the hammer - the previous one is gone and trying to shift the goal posts after the match is a prety futile exercise.
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Xanthe:
03 Sep 2008 2:56:47pm
And interest rates rose and rose and rose......the dollar climbed higher and higher and higher.......the cost of living went up up up......fuel rose more and more and more.....
If you are going to quote what the Liberal Party did during its 11 years, please quote the whole truth, not those things which you consider were wonderful.
As for swallowing anybodys propaganda hook like and sinker, John Howard was the one who kept telling us we had never been so well off......and look where he is now??? He and Costello presided over a Government which thought only of itself and ended up in Opposition!Agree (0) Alert moderator
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Rob:
03 Sep 2008 3:12:38pm
....Sold Telstra, the Gold reserve and anything else that wasn't tied down..
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spin sick:
03 Sep 2008 2:43:40pm
The inflation working through the system has been internationally generated - fuel and food
Budget cuts are MEANT BY DESIGN to reduce economic activity to curb inflation
UNFORTUNATELY because the inflation was internationally generated it took international figures
We STILL have high inflation, BUT now BECAUSE OF ALP POLICY have increasing unemployment (IT WAS IN THEIR BUDGET TO DELIBERATELY DO THIS)
Hence we have some level of stagflation (high inflation and high unemployment) - While this is minor at this time it could get worse. BUT I think th international factors have turned an some of the imported inflation is now coming off the system. BUT it does not escape the fact that higher unemployment was a deliberate policy decision made by Rudd and Swann and they have admitted that in their fight inflation first mantra.Agree (0) Alert moderator
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mike:
03 Sep 2008 2:29:39pm
How can it be Labour govts fault, there were forcasts of this occuring even if the Libs even won the last election?? Just as we can thank the Chinese for our strong growth (it certainly isn't because of anything the government have done), so too we can curse the world economic climate for the downturn. Meanwhile Labor are battling to get their first bugdet passed... How can it be Labor government's fault if the Libs won't allow the budget to be passed in order to utilise their own economic policies? It is a slap in the face of our intelligence to suggest it is the present governments fault, yet parties rely on ignorant masses to gain credibility for their ridiculous arguments, including blaming the government for the high world oil prices that we are paying.
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David:
03 Sep 2008 2:41:10pm
blow me over Mike - why is the government now not responsible for high petrol prices when before the election Labor not only blamed the previous government but suggested they could lower prices? Hoisted on their own petards...
By the way, hate to be a nit picker but the Opposition is not blocking the Budget as you state, they are opposing 3 per cent of measures which they argue are inflationary. They can only do so, of course, where the minor parties and independents also oppose them.
If your suggestion is that government's can't do anything and we are in the lap of the gods why even talk about "present government" versus previous. I think its excuse making for a do nothing Government.Agree (0) Alert moderator
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chalkie:
03 Sep 2008 2:39:28pm
In fact, a quick read of the actual report show that some of this decline is a good thing:
"In seasonally adjusted terms, the main contributors to the increase in expenditure on GDP were Machinery and equipment investment (0.9 percentage points) and Exports (0.5 percentage points). The largest negative contributions came from Imports (-0.6 percentage points), Inventories (-0.5 percentage points), Engineering construction investment (-0.2 percentage points) and Defence investment (-0.2 percentage points)."
More machinery and exports and less military, imports. Some things are better not bought - and here we have the paradox of trying to use GDP figures as a parralle for social improvement.Agree (0) Alert moderator
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Pen Pal:
03 Sep 2008 1:03:59pm
There is good news and bad news - the good news is that the first in a series of official interest rate cuts has started, but the bad news is the Labour Party had to bugger the economy to achieve it!
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Hugh Jampton:
03 Sep 2008 1:07:08pm
Can you explain how the Labor party is responsible for the credit crisis in the US and the spike in the price of crude oil?
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Greg h:
03 Sep 2008 1:09:10pm
Labor party is responsible for sinking consumer confidence which is a big chunk of our economy.
Consumer confidence means less spending= economic slowdown under Labor govt.Agree (0) Alert moderator
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davo:
03 Sep 2008 1:16:33pm
And you think ten successive interest rate rises under the previous government did a lot to boost consumer confidence.
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Neal:
03 Sep 2008 1:38:03pm
10 consecutive rises to a figure which was still incredibly low.
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NT boy:
03 Sep 2008 1:57:44pm
But still the highest in the OECD...
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David:
03 Sep 2008 2:27:11pm
Arguably the strongest economy in the OECD NT Boy. I don't like higher interest rates and think they are coming back to where the RB should have had them. But, I'd prefer to have a job.
Never forget Labor managed the trifecta, recession, record interest rates (19%) and double digit unemployment. The morons trying to rewrite history will never give credit to the Howard Government under whom average inflation and average interest rates were lower than previous Government and under whom unemployment came down to 30 year lows while real wage rises were greater than previous Government and individual and company tax rates were reduced - all while paying of $90 billion in debt.
I don't blame Swan for the international pressures, but he does have to take responsibility for talking down the economy (as he did) rather than being a bit more measured (as he is now doing). Frankly, Labor are not in control of the economy (they are not doing much at all except reviews and committees).Agree (0) Alert moderator
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Rob:
03 Sep 2008 3:10:07pm
It was in fact the Liberals and treasurer Howard who gave us the trifecta of double digit inflation, unemployment and interest rates.
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Gaz:
03 Sep 2008 1:44:32pm
I would say given the span of time those interest rate increases occurred compared with the 3 official interest rate rises + the 3 unofficial rates rises by the banks and the indirect increase via petrol prices, combined totalled 1.75% since november last year!
That is enough to put any economy into shock on top of a government talking down an economy and talking up inflation for political gain!!!Agree (0) Alert moderator
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topend:
03 Sep 2008 1:49:28pm
there were only six under the previous govt and six under the current government - go and have a look at your loan statements.
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Greg h:
03 Sep 2008 1:56:34pm
Consumer confidence took a big hit from November last year, since the elections.
Go check the numbers, it is there for everyone to look.Agree (0) Alert moderator
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Spank:
03 Sep 2008 1:56:47pm
The fact remains that confidence in the Rudd government is the lowest out of any Aust government. Confidence is one of the biggest contributors to a slowing economy.
Labor are pretending to be economic conservatives and pretending to have a plan. How can people have confidence in two blokes who have now openly said there are tough times ahead and theres not much they can do about.
A couple of months ago Rudd said he had done all he can on fuel prices, a couple of weeks ago he said he had done all he can of grocery prices...he did nothing! Nice to know though that "battler Rudd" still has his tax suported nanny for a 14 year old kid and his tax funded butler.
Lets not forget his education revolution either...computers in boxes gathering dust and a re-hash of a liberal plan (plagerism!). Fresh Ideas and plans for the future.....Bollocks.Agree (0) Alert moderator
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1SQ:
03 Sep 2008 2:15:39pm
Davo, can you explain to me how it affected consumer confidence? The interest increases over the Liberal Govt did nothing! Interest rates were still relatively low compared to when Keating was in Govt (20-22% region) the economy was full steam ahead and we all loved it. People suffered incredibly under Keating and businesses went to the wall!
Under the Howard Govt our economy still weathered through external and internal circumstances IE Asian economic crisis, drought & Subprime.
Dont be mislead when the totally inept Rudd Govt uses excuses that the Global economy is at fault. The previous Govt was responsible enough to get Australia through. This Govt has absolutely no experience to weather this storm. History will repeat itself whenever Labour is in power things never are good.
Hold on to your hat Davo the economy is in for a rough ride. Lets hope that people realise that the Labour Govt is not the answer to greener pastures. Lets hope its only a one term Govt for our own sake.Agree (0) Alert moderator
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Mick:
03 Sep 2008 1:38:02pm
Consumer confidence means less spending= economic slowdown under Labor govt.
if that lowers interest rates, BRING IT ON!!!Agree (0) Alert moderator
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Greg h:
03 Sep 2008 2:02:31pm
So what do you prefer
lower interest and very few jobs.
Higher interest rates but lots of jobs.Agree (0) Alert moderator
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John O:
03 Sep 2008 2:33:02pm
Pardon? lowest interest rates I can remember under Libs and lowest unemployment....
It was the opposite under Labour and will be again.Agree (0) Alert moderator
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renn:
03 Sep 2008 2:03:37pm
Less spending = less businesses
Less businesses = less jobs
Less jobs = less taxes
and
Less spending = less tax
Less businesses = less tax
Where do you think this will end?Agree (0) Alert moderator
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Rick:
03 Sep 2008 1:39:07pm
And all the statements we've heard from Nelson and Turnbull in the last few days, about how the RBA's interest rate reduction is due to our dreadful and declining economic situation, is designed to boost confidence?
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Willster:
03 Sep 2008 1:59:56pm
The difference is they're pointing out the weakness of the government, while Kev and Wayno concentrate on sabotaging this country.
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renn:
03 Sep 2008 2:06:33pm
Nelson wanted to reduce the excise on fuel but he got laughed at. No policies the ALP complained. It made sense and it still makes sense , that way everyone benefited including the morgage holders
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Kocsonya:
03 Sep 2008 1:51:08pm
Hm. I would have thought that consumer confidence was sunk by the 10-odd consecutive rate rises, the sharp increase in fuel prices, the housing market slump, the increasing rent, the very high fruit, vegetable, meat and other food prices. None of which was a labor achievment...
Others might have lost their confidence by seeing the manufacturing sector shrinking and the country becoming more and more reliant on export of raw materials instead of value-added products (that are a lot more profitable, at the cost of needing and educated workforce). Again, that's nothing to do with the Rudd government.Agree (0) Alert moderator
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Greg h:
03 Sep 2008 2:08:54pm
Consumer confidence has taken a big hit from Nov last year.
High petrol prices, grocery etc did not suddenly happen from Nov last year.
But what has happened from Nov last year is a new Labor govt and a treasures Wayne swann.Agree (0) Alert moderator
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Spank:
03 Sep 2008 2:21:45pm
The majority of the drop has come in the last six months, during which time speculation has been on a rates cut. The drop is due to having a labor government in power who spend most of there time spin doctoring.
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Mick:
03 Sep 2008 2:31:21pm
manufacturing in Australia has lost over 100,000 jobs since Keating left office (who succeeded Keating? Howard wasnt it?)
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Hugh Jampton:
03 Sep 2008 1:55:35pm
You must be a politician - unable to answer the question, so you provide a stereotype 'answer' to another one that is not even relevant. No-one has yet satisfactorily explained how the mere words of the treasurer have a greater impact on consumer confidence than actual increasing fuel prices and increasing interest rates which hit their hip pockets.
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twobob:
03 Sep 2008 2:16:30pm
A confident consumer with no money (through high interest rates and high oil prices) would have to borrow money to continue spending.
Are you aware of Australias debt levels greg? To allow Australia to continue racking up debt like that without building infrastructure would be Howardesque in its incompetence.Agree (0) Alert moderator
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Gaz:
03 Sep 2008 1:42:07pm
Why is it the Labor party are so "unlucky" when it comes to world events?
Like the Liberals only had the worst drought in recorded history, SE Asian crisis, sub prime hit last year etc etc yet the economy still motored along and they were just considered "lucky".Agree (0) Alert moderator
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Tncs:
03 Sep 2008 1:10:50pm
Apparently interest rates are always lower under the Libs. Clearly they were planning to bugger it more.
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GT:
03 Sep 2008 1:12:46pm
The world economy is slowing and we are the best performers.
World petrol prices have hit people here from purchasing cars.
How can "Pen Pal" have his head in the sand so far?Agree (0) Alert moderator
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topend:
03 Sep 2008 1:50:51pm
Why is the american dollar the UK pound and the Euro rising against the dollar if we were doing so well?
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Kate:
03 Sep 2008 2:27:01pm
A lower dollar greatly increases the revenue from our exports. No bad thing if you're in a mining boom :)
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Matt:
03 Sep 2008 2:33:34pm
Because our interest rates just got cut and there have been expectations of cuts for the past month and more. Exchange rates are strongly influenced by interest rate relativities, that is the size of the difference between our interest rates and overseas rates.
This is why the value of the Aussie dollar fell even though our interest rates are still higher than the the US and the EU.Agree (0) Alert moderator
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Al:
03 Sep 2008 1:13:58pm
Labor has done nothing of the sort. The slowing of the economy is mainly due to GLOBAL circumstance. Would you prefer that the Govt kept spending and spending and interest rates and inflation kept raising?
As someone with a mortgage I'm glad that rates are finally coming down after so many rises.Agree (0) Alert moderator
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Phumducker:
03 Sep 2008 1:34:22pm
Yep - thank god (or her equivalent) that the "GLOBAL circumstances" only started kicking in on November 24th 2007. Prior to that Howard stuffed the country with his drought, his bloody Cyclone Larry, the high price of bananas, soaring oil prices, not to mention the Libs backing of the US sub prime lenders.
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Willster:
03 Sep 2008 1:55:40pm
Not to mention a couple of airliners colliding with inconveniently placed buildings in NY.
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Al:
03 Sep 2008 2:02:30pm
Our economy has been dependent on global factors for a long time, it's just that JWH and Costello tried to tell us otherwise.
Consumer confidence needed to be dampened b/c if people kept spending the way they had been things would be much worse now.
At least Labor are acknowledging there is a problem instead of burying their heads in the sands and telling everyone it is okay. I think it is a sad indictment on the Liberal party that they criticse the Govt for being honest. Perhaps if they had done likewise they wouldn't be out of office.Agree (0) Alert moderator
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Spank:
03 Sep 2008 1:56:13pm
If Rudd and Swan had of actually matched the Coalitions tax cuts and not mislead the Australian public about an Inflation Genie, Confidence would have been higher.
Swann and Rudd were desperate before the election tho state the economically they were no different, most likey to avoid the exact situtation that has developed now...NO CONFIDENCE.
KEv loves to quote OECD data...well the OECD members voted J.Howard and P. Costello two of the best economic managers in the OECD nations. If Costello and Howard had not implimented the budgetary discipline that Rudd is now also trying claim as his own Australia would be in a terible position to ride out the credit crunch.....Lucky Swan at least copied that.Agree (0) Alert moderator
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1SQ:
03 Sep 2008 2:30:03pm
Yes, your mortgage might be easier to pay off. But when you are unemployed because your employer is going through tough economic times your even worse off. And it's happening now as we speak, we see it in the news regularly now.
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Rob:
03 Sep 2008 1:15:22pm
Ah, the deperate Liberal desire to talk down the economy of our nation again rears it's head.
It is being noted.Agree (0) Alert moderator
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topend:
03 Sep 2008 1:52:03pm
Excuse me - Swan made all those comments above not the liberals?
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Rob:
03 Sep 2008 2:52:58pm
I was responding to the comment from another contributer and refering to the constant attempts to talk down our economy from Liberal supporters as well as opposition MP's in parliament.
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Mundo:
03 Sep 2008 1:25:09pm
I wouldn't let that buffoon Costello off the hook, after all, he inherited a low inflation economy from Keating in '96 with interest rates falling and 12 years later hands back an economy with inflation running at a SIXTEEN year high and interest rates rising and inflation, as the RBA keeps telling us, is the bogey in the room. I'm afraid Sneaky Pete did all the stuffing Pen Pal.
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Phumducker:
03 Sep 2008 1:39:46pm
OK - so let me get this straight. Keating gets the credit for everything good in the Australian economy and he has handed the baton to Rudd. But in the longest baton change in history we had to spend 10 years in a black hole accompanied by an idiot Government.
Hear hear for revisionist history! You must be a school teacher on a day off.Agree (2) Alert moderator
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Mick:
03 Sep 2008 1:51:36pm
Keating did do alot of work for our country, Costello just went with the flow for 12 years
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Mundo:
03 Sep 2008 1:55:56pm
Well if its all about history, take a walk down memory lane start at mmm, lets say the year the modern Australian economy was born, the year of the dollar float by, now who was that again, oh yeah, Paul Keating, then the compulsory super reforms, you know the ones that led to over a trillion dollars worth of national savings, financial market deregulation, competition policy, enterprise bargaining, tariff reductions, the wages accord, gosh and we haven't left the 80s yet. Oh and the 11.5% inflation rate left by Frazer and Howard which became 2% under Keating.....every economist in the country credits Keating with all the heavy lifting in relation to the reform of the Australilan economy during the 80s and 90s. For god sake man, where have you been?
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Phumducker:
03 Sep 2008 2:32:20pm
Oh don't get me wrong Mungo man. It's just that I've moved on from the 80s. I give Keating credit where it's due and no doubt I will give eventually give Swan some credit. But I will also give Costello credit for clearing Government debt, establishing a series of future funds, reducing income tax, weathering the Asian financial crisis among other things. I daresay Costello himself would give Keating credit. If he was the buffoon you try to portray him as he could just as easily have tried to undo everything Keating ever did - but he didnt. Just like you won't see Swan dismantle GST despite vehement Labor opposition to it not that many years ago.
Our difference is that I am prepared to give credit to all governments because they have the onerous task of trying to keep everyone happy.Agree (0) Alert moderator
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Billybob:
03 Sep 2008 2:44:01pm
You conveniently left out the 17% interest rates, the 11% unemployment (1 million Australians out of work), the 96 billion dollars of labor debt and a 4% GDP budget deficet in 1996 (the equivalent of 40 billion dollars in todays terms).
Paul Keating was nothing more than a labor hack who hated all of us. The reforms you talk about are minor at best and were nothing more than the rest of the world was doing, only the rest of the world did it better.
Paul Keating is the reason I will never vote labor again.Agree (0) Alert moderator
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Mundo:
03 Sep 2008 1:58:37pm
and another thing Mr Ducker, I note you didn't address the point made in my post regarding inflation and interest rates.
No, I didn't think so.Agree (0) Alert moderator
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Gaz:
03 Sep 2008 1:49:10pm
Mundo
Where do you get your information??
ABS website will tell you interest rate were on the increase when Keating left office and Howard took over. In fact official interest rates went from 4.75% in August 1994 to 7.5% at the time Howard took office.
Now PLEASE tell me where do you get your information from!!Agree (0) Alert moderator
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Mundo:
03 Sep 2008 2:21:53pm
That's right, lets say that again, interest rates were as low as 4.75% under the last Labor government. Do you realise how many punters out there actually think rates were 17% for 13 years. And while we're at it. Mind boggling isn't it, from 17% in 1991 to 4.75% in '94. So, who do you trust to lower interest rates? The ALP have a spectacularly better record than the conservatives. Check the ABS website.
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Gaz:
03 Sep 2008 2:46:10pm
Falling interest rates are not always a sign of a well managed economy. One needs to look at employment figures and GDP etc. to make a good call.
Unfortunately Keating's falling interest came about by 1million unemployed and the recession we had to have.
Just a quick question, do you know much about basic economics? Your comments unfortunately show a very nieve understanding of economics.Agree (0) Alert moderator
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Phumducker:
03 Sep 2008 2:56:16pm
Oh Mungo Man - you've been misled again. The lowest the Standard Variable home loan rate got to in 1994 was 8.75%. In fact in only 19 months during Labor's 13 years did the rate ever go below 10%.
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Billybob:
03 Sep 2008 3:07:51pm
Do you know why they went from 17% to 4.75%? A little thing called the recession we had to have. Bring the country to its knees and watch those rates tumble.
With krudd and swanny still having their L plates on we may just get another one of those magical recessions that bring official rates down so quickly.Agree (0) Alert moderator
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Ann:
03 Sep 2008 2:00:15pm
I'm sure Costello also welcomed the $96 BILLION debt he inherited as well but managed to pay off every cent in a few years. Imagine if the government still had that debt around its neck as well.
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chalkie:
03 Sep 2008 2:30:28pm
or rather exchanged with asset sales. Nett worth didn't really change much once sales of Telstra, CBA and a few others are accounted for.
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pikuks:
03 Sep 2008 2:44:23pm
I think you'll find the ALP has sold of more than the Liberals in dollar terms and number of assets. But facts I suppose don't really matter to rants as they appear here. Just look up and down the page for more jibber than a person can handle.
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Billybob:
03 Sep 2008 3:08:36pm
Commonwealth Bank and Qantas were sold by Keating.
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Phumducker:
03 Sep 2008 3:13:43pm
Another revisionist school teacher???
Better check your facts on who sold off the CBA - the people's bank no less!!Agree (0) Alert moderator
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Spank:
03 Sep 2008 2:26:00pm
We had 11 years of unprecedented growth and still managed to keep inflation in control...admittedly high...but in control.
The labor government have been gifted a strong economy that is aften referred to as the envy of the western world by many economic wrtiers in recent years.Agree (0) Alert moderator
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Kate:
03 Sep 2008 2:39:41pm
At the end of the Howard government, inflation was at a 16 year high and interest rates were the second highest of the developed world.
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Joe:
03 Sep 2008 2:01:11pm
Pathetic! Labour did not bugger the economy. How? they are responsible for oil/petrol price rises? For dumb bank decisions to invest in dodgy US based home finance schemes that have now crashed and caused the banks to have to pass on the increased costs vide interest rate rises (above and independent of Reserve Bank rate rises) on to Australian customers??!
When did the interest rises start? If I remember correctly this happened under Liberal Government! Keep on blaming Labour for everything including for that as well??!! Pathetic... Seriously Liberal Party and their supporters make me sick with their continuing sour grapes and one sided pathetic attempts at blaming Labor for everything. Let me see: Liberals in power for 10 years or so - rate rises and inflation growth start during their time. No one to blame cause Labor was not in power at the time. Labor wins election - is in power for 9 months and gets blamed for everything by Liberal Party and its supporters!! LMAO! Pathetic!Agree (0) Alert moderator
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chalkie:
03 Sep 2008 2:44:12pm
Interestingly, the ABS report notes that net disposable income increased 6.6% in the year to June yet 3.6% of this was in the last quarter (ie March to June).
That seems to say that there is a big difference in a crude measure of GDP and what it actually means for indiviiduals. Not that I feel that I have become 6.6% better off in the last year, but averages are averages . . .Agree (0) Alert moderator
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Pencil:
03 Sep 2008 1:11:23pm
I'm interested to know what percentage of WA's mining boom contributes to the GDP figures.
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geoff:
03 Sep 2008 1:38:55pm
a very good point. at the end of 2006 (note the date) the reserve bank pointed out that apart from the mining sector and state government investment in infrastructure, the economy was basicaly jumping up and down in one spot.
i think they need to come up with different ways to measure this economy thing. the vast majority of australians did not get big income increases just because of the increase in mineral exports. most of us have just been plodding along trying to keep up with inflation. i have no objections at all to those working in those difficult industries getting the high wages they deserve. what i am saying is that it is wrong to assume that because one sector of the economy is growing therefore all the rest are too.
another point here too-would anyone like to inform us of the following comparisons:
a) percentage of household income spent on petrol now compared to say 1988 and 1998
b) percentage of housdehold income spent on credit cards repayments now compared to those years.Agree (0) Alert moderator
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Gaz:
03 Sep 2008 1:51:23pm
In 2006/07 all of Australia's mining contributed approx .7 - .8% of the nations GDP.
In comparison the drought was estimated to have reduced GDP by .5%.
Many pundits like to rave how Howard/Costello were "lucky" to have the mining boom, the FACTS tell different in that the drought had much more affect on GDP than the mining boom.Agree (0) Alert moderator
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topend:
03 Sep 2008 1:53:16pm
I dont know what minig accross the topend of australia has contributed but i suspect if you take it out of the equation you find our economy is in real trouble
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geoff:
03 Sep 2008 2:19:09pm
which is what the reserve bank said at the end of 2006-take out the mining boom, take out state government investment on infrastructure, factor in the drought's effect on the agricultural sector and this country's economy has----nothing.
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Pencil:
03 Sep 2008 2:32:09pm
and take out WA's contribution - economy would be in serious trouble.
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spewbag:
03 Sep 2008 1:11:46pm
greater regulation of industries that obviosuly can't be trusted to control their greed and insane profits (ie banks, petrol, health insurance) would go a long way toward helping control inflation.
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topend:
03 Sep 2008 1:55:19pm
if consumers stopped buying then they would go broke and not make profits. They only make profits if people but their products or services. This is the driver of inflation not company profits.
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renn:
03 Sep 2008 1:19:54pm
Nelson, you had a good idea when you said drop 4cents off the excise on fuel going back when the budget was announced.
It made good sense.
We would have seen the benefit from it already instead of waiting for interest rate cuts which only benefit morgage holders.Agree (0) Alert moderator
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shayne:
03 Sep 2008 1:38:09pm
4c a litre? How many litres are you using to see the benefit?
60lx4c = $2.40pw. BIG DEAL
.25c on $300k = $14pw
Reduction in excise would just be eaten up by the supply chain anyway, and that lost revenue would just come out of your pocket somewhere else.
though, i still find it difficult to understand why and how home owners are being used as chess pieces to control an entire countries spending.
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