My take on the GDP data seems somewhat Panglossian compared to the coverage I am reading elsewhere. But once all the headlines die down about one quarter’s GDP numbers and the analysis and tea-leaf reading finishes, a deeper analysis of the data is available to anyone who cares to take the time.
In this quarter’s release are three indicators that show that Australia is on the right track longer term.
With 106,000 jobs created in the past four monthly employment releases it should be no surprise there are more hours being worked in the economy. The good news is that every additional hour of work is more productive than the last because we are seeing GDP per hour worked trending higher once again.
And tying it all together and showing that the Australian economy is headed in the right direction is that when GDP is adjusted for population growth – per capita – Australia is still improving.
It doesn’t mean the economy will grow forever but Australia should be proud of its record which is now stretching into a 23rd year of growth without a recession.