Australia’s economy grows 0.2% in June quarter

Australia’s economy expanded by a modest 0.2 per cent in the June quarter of 2024, bringing the annual growth rate for the 2023-24 financial year to 1.5 per cent, according to the latest figures published on Wednesday.

This marked the eleventh consecutive quarter of overall GDP growth, but also the sixth consecutive quarter of decline in GDP per capita (total GDP divided by Australia’s population). The GDP per capita decreased by 1.0 per cent over the year.

Annual inflation saw an increase, with the Consumer Price Index (CPI) increased 1.0 per cent in the June quarter and 3.8 per cent compared to the same period in 2023, according to the report.

This was the first rise in annual inflation since December 2022, driven by higher prices for new dwellings, fuel, and fruits and vegetables. However, underlying inflation continued to fall during this period.

Wages price index increased 0.8 per cent in the June quarter, marking a 4.1 per cent rise compared to the same period in 2023. Private sector wages saw a 0.7 per cent growth, the lowest increase since December quarter 2021.

The labour market remained tight, with the unemployment rate rising slightly to 4.1 per cent in June, compared to March. Total hours worked up 1.1 per cent in the quarter, though this was below the growth seen in June 2023.

Attribution: Australian Bureau of Statistics report

Subediting: M. S. Salama