Australia’s economy just posted its worst nominal growth since 1962

The Beatles perform in a club prior to signing their first recording contract, Liverpool, England, 1962. Photo: Getty Images

Today’s release of Q2 GDP for Australia was at the low end of expectations with a 0.2% result for the quarter and a 2% rate of growth for the year to June.

But, the headline data reflects the statisticians’ measurement of “real” growth. That’s growth adjusted for inflation.

While the 0.2% quarterly rate of growth and the 2% year-on-year growth rate were disappointing enough, it is the “nominal” rate of growth that was truly horrible.

The ABS said in its release:

Nominal GDP growth was 1.8% for the 2014-15 financial year. This is the weakest growth in nominal GDP since 1961-62.

Already areas of the economy and businesses associated with mining, and the end of the mining boom are effectively in recession. But, with such a low nominal growth rate the economy as a whole is going to be feel moribund across the country.

Indeed, while Australia’s real rate of GDP growth might not be recessionary nominal growth is weaker than Australi’s last recession in the early 1990’s.

Here’s the chart: