The Times Australia
The Times World News

.
The Times Real Estate

.

6 graphs that explain the economy

  • Written by John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society and NATSEM, University of Canberra
6 graphs that explain the economy

Australia’s economy edged closer back towards normal in the three months to March, growing by 0.8% in the quarter (which is towards the upper end of economic growth before COVID hit in early 2020) and 3.3%[1] over the year to the March (which is somewhat higher than before the pandemic).

The economy is now 4.5% bigger than before the COVID pandemic started. This is a stronger recovery than experienced in the United States, the European Union, the United Kingdom, South Korea and Canada.

Japan’s economy remains smaller than it was before COVID.

Consumer spending grew an impressive 1.5% in the March quarter, and 4% over the year, spurred by a further easing of restrictions and a renewed desire to travel.

Spending on travel services surged 60%. Car sales jumped 13%.

Helping fund the increased spending was a further dip in the household saving ratio, slipping from 13.4% to 11.4% of income.

As seen on the graph, it is still much higher than it was in the four decades before COVID, giving it room to fall further if consumers remain confident.

The drop in unemployment to a half-century low of 3.9%[2] has lifted consumer confidence and spending, although the jump in inflation to 5.1%[3] and the first of several interest rate hikes[4] have damped confidence more recently.

Government spending, notably on health care, contributed to economic growth.

Read more: Inflation hits 5.1%. How long until mortgage rates climb?[5]

The Bureau of Statistics noted[6] a surge in imported rapid antigen tests.

Construction was weak, both for business and housing, partly reflecting shortages of skilled labour.

The closest measure of total average well-being we can get from the national accounts is real net national disposable income per capita.

While this climbed 1% in the March quarter, it doesn’t necessarily mean the typical Australian household is better off.

What matters is how the cake is divided between wages and profits.

The Russian attack on Ukraine drove up commodity prices, driving the ratio of export prices to import prices to a record high.

This lifted the profits of Australian mining companies 25%[7].

The share of national income going to profits climbed to an all-time high of 31.1%.

As a result, even though more of the population was in work than ever before[8], the share of national income going to wages sunk to a near all-time low of 49.8%.

Before COVID the wages share was 53%. At the start of the 2000s it was 56%.

Working out the reasons for the downward trend in the share of national income going to wages, and how to get it higher, will be an important priority for the new government.

Read more: At 3.9%, Australia's unemployment rate now officially begins with '3'[9]

References

  1. ^ 3.3% (www.abs.gov.au)
  2. ^ half-century low of 3.9% (theconversation.com)
  3. ^ 5.1% (theconversation.com)
  4. ^ interest rate hikes (theconversation.com)
  5. ^ Inflation hits 5.1%. How long until mortgage rates climb? (theconversation.com)
  6. ^ noted (www.abs.gov.au)
  7. ^ 25% (www.abs.gov.au)
  8. ^ more of the population was in work than ever before (theconversation.com)
  9. ^ At 3.9%, Australia's unemployment rate now officially begins with '3' (theconversation.com)

Read more https://theconversation.com/national-income-is-climbing-but-the-share-going-to-wages-is-shrinking-6-graphs-that-explain-the-economy-183916

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping