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Treasurer Josh Frydenberg presented the acceleration of infrastructure spending to the Australian economy after the slowdown in growth, which reached 1.8% last year, the lowest rate since 2009.
The Australian economy grew only 0.4% in March, contributing to a seasonally adjusted growth rate of 1.8%. The result contrasts with real GDP growth of 2.25% projected in the budget, which means that the economy is expected to grow by 1.3% in the last quarter of 2018-2019 to reach the forecast.
Figures released by the Australian Bureau of Statistics, released Wednesday, also show that GDP per capita fell 0.03% for the third consecutive quarter, extending the "recession per capita" reported after the last quarter.
Frydenberg told reporters in Canberra that while annual growth has risen from 2.4% to 1.8%, it remains "within the range of market expectations" and comparable to that of other developed economies.
He spoke about existing measures, including the $ 100 billion infrastructure package over 10 years and the planned $ 1,080 tax cuts for low and middle income, which could stimulate the Australian economy.
Frydenberg said the government "would always look for an opportunity" to advance infrastructure investments, such as suburban car parks, but criticized the Victorian government for not approving the east-west connection and the city's capacity constraints. lack of ready-to-go projects.
The Treasurer has given no further indication that the Coalition would provide "additional budget support" or seek to reform the non-monetary levers proposed by Reserve Bank Governor Philip Lowe to boost labor relations. # 39; s economy.
Phantom Treasurer Jim Chalmers said the coalition's economic credibility was "tattered" and the annual growth rate was "low", the worst since the global financial crisis.
"We have a national economy that has moved from the 8th fastest growth in the OECD in 2013, when the government changed hands, to the 20th fastest growing economy in the OECD area," he said. he declared.
The result was weighed down by the decline in housing investment (down 2.5% in the quarter) and the slowdown in household consumption (down 0.3%).
Craig James, Chief Economist of CommSec, generally one of Australia's most optimistic forecasters, said: "The Australian economy has lost momentum. And soft consumer spending is the main culprit.
"Monetary and fiscal stimulus is needed to reduce unemployment and boost inflation. But companies must also react by increasing their investments. "
In seasonally adjusted data, household consumption increased by 1.8% over the past year, the lowest rate since June 2013, compared with 2.25% forecast for 2018-2019 in the budget.
Final consumption of public administrations – particularly in disability and health services – rose by 0.8% in March and by 5% during the year.
Compensation of employees rose 1.2% in March, but the household savings rate rose to 2.8%.
On Tuesday, the Reserve Bank lowered the key rate to a record 1.25%, with the aim of supporting a slowing economy, and further interest rate cuts are expected.
Ben Udy, an economist at Capital Economics, said the Australian economy had "a difficult start in 2019," with falling real estate prices likely to be fueled by slowing growth in the economy. household consumption.
"Overall, today's data does not inspire much confidence in Australia's economic outlook," he said.
"And since the housing slowdown has continued until now in 2019, we do not think this weakness was a one-time problem."
Udy hinted that the RBA "should probably cut rates to 0.75% from 1.25% today."
The Australian Council of Trade Unions attributed the result to six years of strong low wage growth. Deputy Secretary Liam O'Brien warned that the "wage crisis … is slowing down the whole economy now".
December GDP figures indicated economic growth of only 2.3% in 2018 – the slowest trend since March 2015 – and only 0.3% growth in December, the lowest quarterly growth since March 2003 .
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