New GDP Figures
  • 11 September 2016

New GDP Figures

Will Gross Domestic Product (GDP) come down further? It seems that the media is just starting to realise that APRA and RBA’s clamp-down on residential constructions is going to hurt the economy.

contribution-to-gdp-growth-201609

Old figures.... (Source: ABS Statistics Sep 2016)

Australia's economy grew by 3.3 per cent over the year to June, the best annual GDP growth in four years and in line with economist forecasts.

Residential construction is credited with supplying 20% of the GDP of the Northern Territory. Meanwhile the RBA and APRA are busily working on reducing employment in the construction sector – and not a murmur from our elected representatives, Labor or Liberal.

We pointed out last time that the GDP figure would have been at best modest if the income from exports was deducted. The export of iron, coal, gas doesn't put money in your pocket. It doesn't pay your bills nor increase your pay packet. So we were right again, and the government's crystal ball, or should I say the Treasury Department crystal ball, was wrong - again! As was APRA and RBA!

With the release of the new, lower GDP, will we see a change in policy? Will our elected representatives become interested in your take-home pay? Interested in the over 200,000 people without jobs since the 2009 RBA rate hikes? Unemployment then was 4.3%; it now sits at 6%!! I live in hope.

Key points:

  • Economy grew 0.5 per cent in June quarter
  • Government building investment, such as transport, added 0.7 percentage points to GDP
  • Terms of trade improved for the first time since December 2013, boosting national income

gdp-growth-201609

Updated Figures (Source: ABS Statistics Sep 2016)

What does this mean?

RBA should lower rates and the banks should pass on these rates to consumers! The government could then borrow to create more infrastructure jobs. Again remove export income we are near zero GDP!

Without immediate action we could move into a recession. Prime Minister Malcolm Turnbull! Time to act on Jobs!!

Kevin Young Property Club Founder

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