Growth in the Australian economy has spluttered to a virtual standstill as households continue to juggle higher costs of living and larger mortgages repayments. But it might have been worse if it was not for spending on big ticket events like Taylor Swift and the Melbourne Grand Prix.
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00:00It's the recession Australia isn't having, yet.
00:07And the Treasurer is clinging to the hope it won't arrive.
00:12Any growth is welcome in these domestic and global circumstances that we confront.
00:18Unlike the 1990s, record population growth is keeping Australia out of recession.
00:24But per person, we've gone backwards for five quarters in a row.
00:29The economy barely grew in the March quarter, taking GDP to 1.1 per cent for the year.
00:35Household spending provided a lifeline, with Australians not only forking out for essentials,
00:41but also splashing some cash on travel to Asia, concerts and sporting events.
00:47That meant they saved a smaller portion of their income.
00:51Government spending was also up, but investment across the economy was down.
00:56The Reserve Bank Governor, grilled at Senate estimates ahead of the data release,
01:00remains hopeful of avoiding a recession.
01:03Given the bank wants to prevent job losses, Anzac economists don't think that will happen.
01:09The chances of a hike, given they are trying to achieve and maintain the gains,
01:15as we heard a lot in Senate estimates today, that they're unlikely to hike again.
01:21The RBA meets again later this month.
01:23Most economists believe the March quarter GDP data won't affect the board's current holding pattern.
01:31With the chances of a rate cut by the end of the year now slightly higher.