The cause of Australia’s worst economic growth rate since the GFC
According to a leading economist, Australia’s worst economic growth rate since the Global Financial Crisis (GFC) is not the result of global issues, but rather problems closer to home.
Gross domestic product (GDP) growth is now at its slowest since the 2009 GFC.
Although some have blamed the slump on global issues such as Brexit and the US-China trade war, Chief Economist at Deloitte Access Economics Chris Richardson tells John Stanley it’s the result of more local issues.
“By and large it’s not what’s happening globally that’s led to weaker growth in the Australian economy, it’s housing… and it’s the drought. “
But he says he’s confident the government’s recent tax cuts will have a positive impact on the economy.
“It’s enough to see growth improve slowly from here. It may not turn up in the next couple of months… but I’m reasonably confident it turns up by Christmas.”
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