Treasurer Scott Morrison says the fall in GDP is more than a warning for Australia, it’s a message that investment is the key to economic growth.
He says the 3.2% fall in new business investment is the dominant cause for the contraction in real GDP by 0.5% in the September quarter, leaving full year growth at just 1.8%.
Morrison says the fall is “not just a reminder, not just a wake-up call or a warning about being complacent” but demonstrates the need for incentives for investment, including corporate tax cuts.
“Driving investment is the challenge,” Morrison says.
“We’ve had 12 consecutive quarters of contraction in private investment. If you compare this to 2008 the big difference is business investment.”
He says the GDP number is a demand to support economic policies that drive the investment needed to support job security.
“We’re looking for partners in this parliament who want to go on that journey with us so we can set up the next 25 years of growth, and today’s data says it’s time to join the national economic plan for jobs and growth,” Morrison says.