New data indicates that the Australian economy is growing very slowly.

Australia's economy experienced another period of slow economic growth, with the latest data from the Australian Bureau of Statistics showing the weakest annual figures in decades outside of the pandemic. The economy grew by a mere 0.2% in the June quarter and only 1.0% over the last financial year, the lowest growth since 1991-92 (excluding the COVID-19 years).

The Australian Bureau of Statistics' head of national accounts, Katherine Keenan, stated that while the economy did grow for the eleventh consecutive quarter, it did so at a slower rate compared to the previous financial year. She also noted that, if we exclude the pandemic period, the annual growth was the lowest since the gradual recovery from the 1991 recession.

Despite these concerning numbers, there were still some positive signs in the national accounts data. While the annual growth was low, it was still better than expected. The major banks had predicted a rise of 0.8 to 1.1%, and the Reserve Bank had forecasted 0.9%. The quarterly numbers were also in line with economists' forecasts, ranging between 0.1 to 0.4%. In fact, the ABS even revised the March figures slightly, revealing that the economy had actually grown by 0.2% instead of 0.1%.

However, the per capita GDP continues to decline. It has now shrunk for the sixth quarter in a row, dropping by 0.4%. Over the past year, it has decreased by over 1%. This means that when we take into account the effect of population growth, the Australian economy is still going backwards. As 9News Finance Editor Chris Kohler explained, this translates to 18 months of per capita recession, which is what the average Australian household is feeling. It's no wonder that consumer sentiment is weak, as this is the worst recession we have experienced since the early 90s, and possibly even since the mid-70s.

Overall, the latest economic data paints a somber picture for Australia's economy. While there were some signs of growth, they were not enough to counteract the ongoing decline in per capita GDP. It is clear that the effects of the pandemic are still being felt, and it may take some time before we see a significant recovery.

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