Australia brought up a record-breaking 103 consecutive quarters of economic growth without a technical recession this week.
But looking under the hood of this week’s GDP data, the list of concerns about the future outlook for Australia’s economy is growing.
Chief among these is the pressure on households from weak wages growth and high levels of debt, which is retraining household consumption.
As is so often the case in Australia, however, there are significant differences in how this is playing out in various parts of the country. Westpac senior economist Matthew Hassan has a detailed knowledge of the variances at play and he joined us on this week’s episode of our markets and economics podcast, Devils and Details, to share his insights.
On the agenda:
- The details of the Q1 GDP result and the reasons for the weakness;
- Why households might still be feeling some of the effects of the GFC;
- The medium-term outlook as baby boomers enter retirement over the coming years, and
- Some of the factors behind Australia’s extraordinary run of growth.
Hassan is also a New Zealander, so we get to talk about the major goings-on in world rugby too as the British and Irish Lions tour New Zealand and prepare to take on the All Blacks in the first test on June 24.
You can find the show on iTunes, or listen in below. Enjoy!