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GDP slows to 0.2% in June quarter, slowest rate in more than two years; ABS 5206.0 - Australian National Accounts: National Income, Expenditure and Product, June 2015
Topic Started: 2 Sep 2015, 02:47 PM (934 Views)
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ABS Data: http://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0

GDP growth rates, Volume measures, quarterly change
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Contribution to GDP growth, Seasonally adjusted
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JUNE KEY POINTS

GDP SUMMARY

The June 2015 quarter national accounts show growth in the Australian economy slowing to 0.2% in seasonally adjusted chain volume terms.
Reduced Mining and Construction activity, coupled with a decline in Exports were the main factors to the slowdown in economic growth. Positive contributions came from Domestic final demand, and the Financial, Transport and Health industries.
Mining production fell significantly this quarter (-3.0%), although it is still positive through the year with growth at 2.1%. The decline in Mining production coincides with the fall in Exports. Net exports detracted 0.6 percentage points from GDP growth in the quarter, through the year they added 1.1 percentage points to GDP growth.
This quarter continues to see the decline in mining related construction (Engineering construction -0.8%), which is reflected in the decline in Construction Gross value added (-0.6%).
There was positive growth in Domestic final demand with Household final consumption growing 0.5% this quarter and 2.5% through the year. Government final consumption had growth of 2.2% for the quarter and 4.0% through the year. Public gross fixed capital formation was up 4.0% for the June 2015 quarter, but remains subdued through the year with growth at 0.4%.
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GDP: growth slows to 0.2 per cent in June quarter, slowest rate in more than two years

September 2, 2015, Mark Mulligan

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Measured across the financial year which ended on June 30, GDP growth was 2.4 per cent. However, nominal GDP growth, which is not adjusted for inflation, came in at 1.8 per cent, its weakest rate since the 1961-62 financial year, according to the ABS.

Wednesday's figures were below most expectations, and the Australian dollar immediately dived below US70¢, before recovering. Some economists had warned of zero growth, or even a contraction.

The second-quarter figures could have been worse but for an unexpected 2.9 per cent jump in public sector investment, linked mainly to a Federal government order for three warships, according to some analysts.

Despite the slowdown, Australia has lasted 24 years without a recession, putting it just behind the Netherlands, which enjoyed 26 years of growth between 1982 and 2008.

However, Capital Economics' senior economist for Asia Daniel Martin said the chances of a recession were now "looking larger than at any time in the last 24 years".

Read more: http://www.smh.com.au/business/the-economy/gdp-growth-slows-to-02-per-cent-in-june-quarter-slowest-rate-in-four-years-20150901-gjd3gi.html
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The Whole Truth
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Perhaps this is the only good side to the recent market action? Trading stocks now makes up a big part of GDP so if they can encourage people to dive in and out every other day it will boost the economy.
I mean it's not like we do much else here now.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Will
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The Whole Truth
2 Sep 2015, 03:43 PM
Perhaps this is the only good side to the recent market action? Trading stocks now makes up a big part of GDP so if they can encourage people to dive in and out every other day it will boost the economy.
I mean it's not like we do much else here now.
Yes, I too wonder how much of this miserable 0.2 percent growth is credited to useless GDP measures like increasing fines (traffic or other), massive increase in existing property prices, and indeed trading stocks and the like. None the less, it's still just positive so Australia has not gone into recession yet.
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Loki
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Will
2 Sep 2015, 05:15 PM
Yes, I too wonder how much of this miserable 0.2 percent growth is credited to useless GDP measures like increasing fines (traffic or other), massive increase in existing property prices, and indeed trading stocks and the like. None the less, it's still just positive so Australia has not gone into recession yet.
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There was positive growth in Domestic final demand with Household final consumption growing 0.5% this quarter and 2.5% through the year. Government final consumption had growth of 2.2% for the quarter and 4.0% through the year. Public gross fixed capital formation was up 4.0% for the June 2015 quarter, but remains subdued through the year with growth at 0.4%.


The government spent more money (GFCE). This is the same government that got elected saying that governments need to spend less money.

In other words, the private sector is in recession already and the government is borrowing money and spending it, in spite of the fact that this has been tried almost everywhere in the first world and failed. It's different here though.


“Talk sense to a fool and he calls you foolish.” - Euripides
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Veritas
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Loki
2 Sep 2015, 09:59 PM



The government spent more money (GFCE). This is the same government that got elected saying that governments need to spend less money.

In other words, the private sector is in recession already and the government is borrowing money and spending it, in spite of the fact that this has been tried almost everywhere in the first world and failed. It's different here though.
The spending hasnt failed.

QE hasnt failed.

Things would be far worse if Herbert Hoover economics won the day.

Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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Loki
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Veritas
2 Sep 2015, 10:03 PM
The spending hasnt failed.

QE hasnt failed.


It was a spectacular success in Japan.
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Things would be far worse if Herbert Hoover economics won the day.

Yes, it would be all over in 2 years. Like 1921-22. Much worse.


“Talk sense to a fool and he calls you foolish.” - Euripides
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Veritas
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Loki
2 Sep 2015, 10:14 PM
It was a spectacular success in Japan.


Yes, it would be all over in 2 years. Like 1921-22. Much worse.
What the cleasing effect of mass poverty and unemployment on the economy?

The gret liquidation?

Its a cute theory. Of course, Keynes told us how very wrong it was.

The truth is that the Great Depression ended in the US a a result of massive fiscal stimulus( WW2 loomed) and the new deal.

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Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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Perthite
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Fuck that recession call is not looking so bad now hey Skamy?
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Loki
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Veritas
2 Sep 2015, 10:39 PM
What the cleasing effect of mass poverty and unemployment on the economy?

The gret liquidation?

Its a cute theory. Of course, Keynes told us how very wrong it was.

The truth is that the Great Depression ended in the US a a result of massive fiscal stimulus( WW2 loomed) and the new deal.

Posted Image
Gawd, so much error in a single post.

But at least your chart agrees with me. :lol

1921-22 depression was cut short by sensible monetary and fiscal policies, and then it pretty much idiots all the way down from there. The highlight being Keynes' General Theory, which is the stealth communist manifesto.

The new deal had no effect on employment, only military mobilization. Being the one economy left standing after the war allowed the US to expand it's economy through exports, without which there would have been another recession/depression. Oil exports and cold war alliances established the petrodollar system, which allowed the US to live on the credit card for the past 25 years.

It has got nothing to do with the pre-war fiscal stimulus. War is a net cost. Bullets don't grow and you can only use them once.


“Talk sense to a fool and he calls you foolish.” - Euripides
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