In a recent interview, UNSW Business School professor Richard Holden said figures released by the Australian Bureau of Statistics show "we've now entered an effective recession in Australia."
As he explained it, GDP per capita shrunk in both Q3 and Q4 of 2018. "Two quarters of negative growth," he said, "[is] a recession on a per capita basis, and the figures show a large part of that is consumer spending, growing at only 0.4 per cent in Q4. It’s a huge slice of the economy at almost 60 per cent of GDP, but it has stalled.”
He added: "Given the level of unemployment in Australia, how wages growth is persistently weak, and stubbornly low inflation, the economy should be roaring along. It’s not. This gives us further evidence that secular stagnation has hit Australia."
So, if a recession is finally happening, what will it mean for your clients?
A typical result of a
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