Australia’s economy faces worst performance since 1992, pandemic aside | Business & Economy

Australia’s Economy Suffers Worst Performance in Over Three Decades

Australia’s economy has experienced its weakest growth in more than 30 years, with the gross domestic product (GDP) declining by 1.5 percent on a per capita basis following a series of interest rate hikes. The Australian Bureau of Statistics revealed that the GDP only grew by 0.2 percent in the April-June period and 1 percent over the past year.

Since the 1991-92 recession recovery period, excluding the impact of 2020, this marks the slowest annual growth for the country. The recent economic struggles can be attributed to the record-high levels of immigration, which have negatively affected per capita GDP.

The economy’s current challenges stem from the central bank’s decision to increase interest rates 13 times between May 2022 and November 2023 to address soaring inflation rates. These rate hikes have been criticized for causing significant damage to the economy, prompting calls for rate cuts to revive growth.

Amidst rising discontent, Prime Minister Anthony Albanese’s government faces dwindling support, with recent polls indicating dissatisfaction with his leadership. The economic downturn and inflation concerns continue to dominate public opinion, highlighting the need for proactive measures to stimulate economic recovery.