This Chart Shows Why The Australian Economy Feels Weaker Than The Stated GDP Growth Rate

Getty/ Jeff J Mitchell

Do you feel like the economy is weaker than the stated 2.7% growth rate? Are you not really surprised that growth was only 0.3% when the pundits were expecting 0.7%?

Then here is a great chart from Westpac’s chief economist Bill Evans which shows the difference between what GDP says growth was and where domestic demand is.

As you can see, the part of the economy which doesn’t take into account exports is much weaker than the total economy when the external sector is included.

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