Our economy has been described as “the wonder down under” but complacency rules and chaos beckons under Green/CFMEU administration.
A glance at the table of economic and financial indicators at the back of The Economist shows Australia leading the pack of advanced countries in GDP growth, and this has been the case for many years. However, our population growth is also leading the pack, and in per capita terms our growth rate is now unexceptional.
GDP is also an overarching indicator that conceals as much as it reveals. For example: household consumption spending is robust, but how long can this continue on the back of a falling saving rate and world-beating household debt levels? Meanwhile, business investment is weak.
The reality is that Australia’s performance looks good in the rear view mirror, but there are good reasons to be concerned about the road ahead.
The careless reference to gross GDP rather than GDP per capita is particularly stupid or deliberately misleading. GDP as an indicator is fragile at the best of times, for example the extra petrol burned by cars stuck bumper to bumper in traffic jams counts as an addition to the GDP as does expenditure on electricity.
As for our prime position on the Economic Freedom Index, recall the piece by William Coleman in (possibly) the last Policy savaging the rating with his perception of the state of business affairs in the nation.