The Australian economy remains in growth mode according to the latest national accounts figures of the Australian Bureau of Statistics. It is one of the three key pieces of data released by the bureau.
First, the data shows that the economy grew 3.6%. That was the strongest growth figure in 10 years. This covers the 2021-22 period
There are several factors affecting this growth. The number one contributing factor is the restrictions due to Covid 19 have eased. Household spending grew by 2.2% as we go out more. We also travel more, and spend more hours at work.
Second, GDP per capita (i.e. after allowing for population growth) increased 3.1%. The last time Australia recorded a higher figure was in 1998-99.
Third, labour productivity rose 1.1%. While that was lower than the figures recorded in FY21 (1.9%) and FY20 (1.5%), it shows that businesses are finding ways to get more value out of their workforce.
Together, these data points suggest the economy remains in growth mode and is stronger than some negative media commentary might suggest.
Meanwhile, Reserve Bank forecasts from earlier this month suggest the economy will grow about 3% during the 2022 calendar year, and then 1.5% in both 2023 and 2024.
The unemployment rate is expected to remain around 3.5% until mid-2023, before increasing to around 4.25% by the end of 2024, as economic growth slows.
It is not only the economy that is rising but rental properties as well, according to this previous post. This is largely due to the increase in migrant and foreign student numbers due to the easing of flight restrictions across the county.
With the extra demand for housing, it is worth investing in the rental property market. If you are thinking about purchasing rental property, contact us and we are happy to discuss your goals and objectives.