Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


AU’s economy expands at slowest pace in 8 years

Australia’s economy expands at slowest pace in 8 years

Dec. 3 – Australia’s economy grew at the slowest quarterly pace in eight years as household spending weakened.

Gross domestic product expanded 0.1% in the third quarter for an annual increase of 1.9%, according to the Australian Bureau of Statistics. That lagged behind the 0.2% median estimate in a Reuters survey.

“A crisis of confidence on the consumer front was a key factor in Q3,” economists at Westpac said. “Australians were rattled as they saw wealth decline, with house prices falling gradually and the share market dropping sharply.”

Slowing growth raises the prospect that the Australian economy will slide into recession as corporate earnings flag and stocks tumble. Reserve Bank Governor Glenn Stevens has cut the benchmark interest rate by 300 basis points to since early September. The GDP report may add to pressure on the bank for further cuts, economists said.

“It was a quarter in which monetary policy was very tight, the credit crisis was biting and the global economy was slowing significantly,” Westpac said.

Household savings rose by A$4.9 billion in the latest quarter, helped by the impact of tax cuts, which consumers opted not to spend.

Stevens cut the benchmark rate to 4.25% yesterday, citing a “significant moderation in demand and activity” in developed economies.



© Scoop Media

Top Scoops Headlines


Scoop HiveMind Project: Universal Basic Income - Are We Up For It?

This is an opportunity for you as one of the 4 million potential funders and recipients of a Universal Basic Income to collectively consider the issue:
1. Is UBI is a desirable policy for New Zealand; and
2. How should a UBI system work in practice. More>>


Lyndon Hood: National Announces Plan To Hit Youth With Big Mallets

The National party has announced its youth justice policy, which includes a controversial plan for recidivist serious youth offenders to be hit over the head with a comically large rubber mallet. More>>


Lyndon Hood: This ->

It's been brought to my attention that Labour's new campaign slogan is "Let's do this". A collective call to action. A mission. I myself was halfway out of the couch before I realised I wasn't sure what it was I was supposed to do. More>>


Scoop Hivemind Report: What New Zealanders Think About Affordable Housing

Ordinary citizens have had very few venues where they can debate and discuss as to what they believe has led to the crisis in affordable housing and how we might begin to address this. The HiveMind on affordable housing was about redressing the balance. More>>


New Hivemind Exploration: Opening The Election - Freshwater Quality

This is an opportunity for you as one of the 4 million guardians of our common water resources to help us find mutually agreeable solutions to the critical task of collectively managing these resources for health and sustainability. More>>