Last week the National Accounts data came out.
Today’s National Accounts have confirmed Australia’s economy is now bigger than it was pre-pandemic, a feat no major advanced economy has achieved.
We’re continuing to lead the world in our economic comeback – with our economy growing by 1.8% in the March quarter. pic.twitter.com/Pvu94PNlvO
— Josh Frydenberg (@JoshFrydenberg) June 2, 2021
To be fair it wasn’t all a bad news story – but it isn’t quite the good news story it has been talked up to be.
Yes – we are bigger than we were some 18 months ago. But … so what?
It is not enough to get back to where you were – we need to recover what we have lost.
So I downloaded some data from the ABS and simply extrapolated the the data from December 2019 to the present to get a guesstimate of where we could/would have been and then compared that to where we are.
So looking first at GDP – yes we are back to slightly above December 2019 levels, but …
The ‘lost GDP’ is $105 billion (and counting).
Then looking at Household Expenditure.
The ‘lost household expenditure’ is $106 billion (and counting).
Things could be worse – but we shouldn’t pretend that we’re out of the woods.
Update: GDP per capita.
Lost GDP per capita is $3766.