Aus economy boosted by consumer spending amid growing challenges

Canberra, Sep 7 (SocialNews.XYZ) Data from the Australian Bureau of Statistics (ABS) on Wednesday showed the country's gross domestic product (GDP) grew 0.9 per cent in the second quarter this year and 3.6 per cent in the 12 months to June.

It marked the third consecutive quarter of economic growth after a contraction in the September quarter of 2021 due to the Covid-19 Delta outbreak, Xinhua news agency quoted the ABS as saying.

"Rises in household spending and exports drove growth in the June quarter," Sean Crick, head of national accounts at the ABS, said in a statement.

Some analysts have warned the full impact of five consecutive interest rate rises by the Reserve Bank of Australia (RBA) will be reflected in economic activity towards the end of 2022, with spending expected to fall.

Responding to the data, Treasurer Jim Chalmers warned of growing economic challenges.

"Today's National Accounts reflect an economy rebounding from the disruption of the pandemic but held back by capacity constraints, skills shortages, and declining real wages," he said.

"This is an economy which is growing, but the challenges are growing as well. It's a solid outcome, but it doesn't tell the full story about our economy."

Chalmers pointed out that there was further evidence in the national accounts of the significant cost-of-living pressures impacting many Australian households.

He said while there were signs of wages starting to pick up, the national accounts measure of average earnings increased by less than the consumer price index over the year to June, indicating falling real wages.

Source: IANS