Connect with us
Byron Bay News and Weather copy
Mt Warning News and Weather copy
Kyogle News
Grafton News and Events copy
Byron Bay News and Weather copy
Mt Warning News and Weather copy
Kyogle News
Grafton News and Events copy
previous arrow
next arrow

Local News

Economy ‘On Life Support’ as Inflation and High Interest Rates Take Their Toll

Published

on

By

Australia’s economy decreasing
Advertisements
MadeComfy

Economy ‘On Life Support’ as Inflation and High Interest Rates Take Their Toll

 

Robert Heyward

 Australia’s economy continues to show signs of strain, with per capita GDP shrinking for the sixth consecutive quarter in June, according to the latest data from the Australian Bureau of Statistics (ABS). The economy experienced a 0.4% drop in per capita GDP, mirroring the March quarter decline and confirming ongoing concerns about a per capita recession. While the broader economy grew by 0.2% during the June quarter, this marks the slowest annual growth rate since 1991-92, excluding the pandemic years.

Stephen Smith, a partner at Deloitte Access Economics, noted that the figures are unsurprising to struggling households. “The economy remains on life support as inflationary pressures continue to bite,” he said, echoing sentiments that the current economic environment is far from stable.

Weak Household Demand and Inflationary Pressures

The ABS highlighted that subdued household demand was a key factor in the sluggish growth, with household consumption subtracting 0.1 percentage points from GDP this quarter. The ongoing impact of inflation and high interest rates has caused a significant reduction in discretionary spending, a trend likely to persist as households continue to tighten their budgets.

Smith suggested that while inflation remains a priority, there may be a shift in economic focus. “The economy has likely hit the bottom of the trough, and now the conversation needs to move beyond just inflation.”

Interest Rates: Have They Peaked?

With per capita economic growth contracting for six consecutive quarters, many economists believe that interest rates may have reached their peak. PropTrack economist Anne Flaherty said the data raises concerns. “We haven’t seen this level of persistent negative per capita growth in decades,” she noted.

Smith was more definitive in his view, stating that the ABS data indicates interest rates have peaked. All eyes are now on the Reserve Bank of Australia (RBA), with Flaherty suggesting that the central bank may hold rates steady in its next meeting. “While the expectation is that rates won’t move, it will be fascinating to see what the RBA highlights, given the broader economic challenges.”

Households Feeling the Squeeze

Essential spending, including rent and other housing-related costs, rose by 0.5% in the June quarter, underscoring the pressure on household budgets. Flaherty pointed out that most household income is being funnelled into higher rent and mortgage payments, leaving little room for savings or discretionary spending. “For first-home buyers, the outlook remains incredibly tough,” she said, adding that saving for a deposit is taking much longer due to these financial constraints.

Homeowners aren’t faring much better, with many finding they have little left after mortgage repayments and general living expenses. Flaherty warned that more households might continue to struggle as economic pressures mount.

Government Response: Data Highlights Pressure on Households

Treasurer Jim Chalmers acknowledged that the small uptick in GDP growth was driven by persistent but moderating inflation, as well as ongoing global uncertainties. “This data clearly shows the pressure households are under,” Chalmers said. He added that the government’s economic plan is focused on fighting inflation without causing further damage to an already weak economy.

However, shadow treasurer Angus Taylor was quick to criticise, accusing Chalmers of mismanaging inflation and the economy. Taylor argued that the treasurer’s focus on the RBA has detracted from addressing homegrown inflation, further worsening the economic situation. “This looks, feels, and smells like a recession,” Taylor said, pointing to the rising cost of living and sluggish economic growth as failures of Labor’s economic policies.

Signs of Optimism Amid Economic Woes

Despite the bleak data, Smith noted a few positive developments. The upcoming Stage 3 tax cuts are expected to increase real household income by around one percentage point in the coming year. Additionally, support payments, such as energy bill subsidies, will provide some relief to consumers, offering a potential boost to retail and wholesale industries.

On the housing front, there was a modest 0.1% increase in dwelling investment, driven by a 2.5% rise in new house completions. This is a welcome sign for the construction sector, which has faced challenges related to labour shortages and rising building costs.

Flaherty also struck a cautiously optimistic tone, noting that while the economic growth figures are meagre, they are still positive thanks to strong population growth. “More people means more consumption and demand, which is helping to keep the economy afloat,” she said.

Conclusion

Australia’s economy is navigating a challenging period, with inflation, high interest rates, and shrinking per capita GDP weighing heavily on households. While there are some signs of optimism, such as tax cuts and increased household support, the broader economic outlook remains uncertain as the RBA and the government work to strike a balance between managing inflation and supporting growth.

 

For more real estate news, click here.

Advertisements
Tenterfield-The Bowlo

Breaking News

LISMORE MAYOR ELECTED NEW CHAIR OF REGIONAL CITIES NSW

Published

on

By

LISMORE MAYOR ELECTED NEW CHAIR OF REGIONAL CITIES NSW
Advertisements
MadeComfy

LISMORE MAYOR ELECTED NEW CHAIR OF REGIONAL CITIES NSW

Regional Cities New South Wales (RCNSW) has elected a new Chair and Deputy Chair for a two-year term.

Lismore City Council Mayor, Cr Steve Krieg was elected as Chair and Cr Russell Webb, Mayor of Tamworth Regional Council, was re-elected Deputy Chair at a board meeting in Sydney yesterday.

Steve Krieg

Steve Krieg the new Chair of NSW Regional Cities

The new leadership will lead the organisation post-NSW local government elections, which took place in September.

Cr Krieg said he was proud to lead Regional Cities New South Wales as it advocated for a fair share of investment and population growth to ensure regional cities continued to thrive.

“Regional Cities New South Wales is an important advocate for its members and has a proven track record as a valuable partner for the State Government,” Cr Krieg said.

“I am passionate about the work of Regional Cities NSW. Our members are a similar size and are facing similar issues. Together, we are stronger.

“We have much work to do as we are on the frontline of change in New South Wales. This includes growing populations, energy transition and climate impacts.

“Our cities are also highly liveable and we know regional living is on the minds of many Sydneysiders. We want our cities to retain their liveability as new residents continue to make the move.

“As chair, I will be a strong voice for our member cities as we meet these opportunities.”

Cr Webb retained his position as Deputy Chair.

“I’m very happy to be reappointed as Deputy Chair,” Cr Webb said. “It has been fantastic working with Mayors, General Managers and CEOs of Regional Cities New South Wales.”

“Cr Krieg will lead us in the right direction and I am looking forward to working in partnership as we continue to build our strong network of relationships in Macquarie Street,” Cr Webb said.

Cr Krieg also noted the work of Cr Mathew Dickerson, who stepped down as Chair after the New South Wales local government elections.

“Cr Dickerson has left a great legacy as I take the reins of Regional Cities NSW,” Cr Krieg said.

“Cr Dickerson has led us through the many challenges we have encountered over the past few years, particularly as our members faced natural disasters, housing availability and growing skills shortages.

“Regional cities have received key support in these areas due to his leadership and advocacy. There is still much to do, but the impacts in these areas have been meaningful for our communities,” Cr Krieg concluded.

Advertisements
Tenterfield-The Bowlo
Continue Reading

Breaking News

Detectives release CCTV appeal following ram raids and arsons of Northern NSW tobacconists

Published

on

By

NSW-Northern-Rivers-Breaking-News
Advertisements
MadeComfy

Detectives release CCTV appeal following ram raids and arsons of Northern NSW tobacconists

PLEASE NOTE: CCTV vision of the ram raids vehicle of interest is available via Hightail – https://spaces.hightail.com/receive/RhBnymtkWg

© State of NSW (NSW Police Force). For editorial use only. No sublicensing of any NSW Police Force supplied image or footage allowed on a standalone basis without the express written consent of NSW Police Force. NSW Police Force attribution notice and logo to be retained on all copies of supplied images or footage with the moral rights to no false attribution and of integrity in all its images and footage asserted.

Financial Crime Squad detectives have released CCTV as they appeal for information following the ram raid and arson of two tobacconists in Northern NSW.

About 4.30am on Sunday 22 September 2024, police were called to a tobacconist on Minjungbal Drive, Tweed Heads South, following reports of a crash.

Officers attached to Tweed/Byron Police District arrived to find a Toyota Corolla sedan, believed to have been stolen from Queensland, driven into a tobacconist, before two unknown males entered the business destroying several displays and stealing large amounts of cigarettes.

A crime scene was established, and police commenced an investigation into the incident.

A month later, about 2.40am on Tuesday 22 October, police were called to the same tobacconist, following reports a car had driven into a neighbouring business.

Police arrived to find a MG SUV had driven into the store – as bollards had been placed in front of the tobacconist – before two unknown men poured fuel inside the business and fled without setting it alight.

A crime scene was established, and police commenced an investigation into the incident.

About 3.30am the next day (Wednesday 23 October 2024), emergency services were called to River Street in Ballina, following reports of a building fire.

On arrival, officers attached to Richmond Police District located a silver Mercedes sedan inside the shopfront of a tobacconist, well alight.

Police were told the sedan drove into the business before the vehicle caught fire, with the occupants of the vehicle leaving the scene prior to police arrival.

Fire and Rescue NSW attended and extinguished the blaze; however, the building was extensively damaged.

Surrounding units were evacuated and two other vehicles were damaged by the blaze.

No injuries have been reported as a result of the incident.

A crime scene has been established and an investigation into the incident has commenced.

Following initial investigations linking all three incidents, detectives attached to State Crime Command’s Financial Crime Squad’s Arson Unit commenced Strike Force Albany to investigate the incidents.

As part of investigations, strike force detectives have released CCTV of the two ram raids at the Tweed Heads South tobacconist.

Detectives are also hoping to speak to the driver and passengers of a dark coloured sedan seen leaving the scene of the second ram raid.

Anyone with information about any of the incidents are urged to contact police or Crime Stoppers on 1800 333 000.

Anyone with information that may assist investigators is urged to contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au. Information is treated in strict confidence. The public is reminded not to report information via NSW Police social media pages.

Advertisements
Tenterfield-The Bowlo
Continue Reading

Local News

NSW SES Reflects on Storm Response and Urges Preparedness

Published

on

By

NSW-Northern-Rivers-Breaking-News
Advertisements
MadeComfy

NSW SES Reflects on Storm Response and Urges Preparedness

As the recent storms impacting the Northern Rivers, Clarence Valley, and Coffs Coast regions briefly subside, the NSW State Emergency Service (SES) is taking a moment to acknowledge the tireless efforts of its volunteers who have responded to over 159 storm-related incidents since Sunday.

The severe weather, which struck on Sunday through Wednesday evenings, left widespread damage across communities including Federal, Tweed Heads, Grafton, Coorabell, Richmond Hill, and Lismore. The majority of incidents involved fallen trees, blocked roads, and property damage, creating significant safety hazards.

Proactive Storm Preparation Urged

With clear weather providing a temporary reprieve, Superintendent Scott McLennan encourages residents to use this time to prepare for further storms expected today and next week.

“Check your gutters and drains for leaves, branches, or debris that could block water flow and exacerbate flooding during the next storm,” Superintendent McLennan advised.

He stressed the importance of vigilance, noting that saturated catchments could lead to flash flooding even with light rain.

“We are still in a volatile weather pattern, and taking precautions now can significantly reduce risks to homes and properties,” he added.

Motorist Warnings

The SES also issued a stern warning to drivers about the dangers of navigating flooded roads.

“We’ve seen vehicles speeding through flooded causeways, which is not only dangerous but also risks becoming stranded or causing further damage to roads,” Superintendent McLennan said.

Motorists are urged to exercise caution and avoid flooded areas entirely to protect themselves and others.

Stay Prepared

Residents and visitors are reminded to:

  • Clear gutters and drains of debris.
  • Secure outdoor items that could become projectiles in strong winds.
  • Monitor local weather updates and SES warnings.
  • Avoid driving through floodwaters under any circumstances.

The NSW SES remains on alert and ready to assist communities as the region navigates this challenging weather period. For emergency help in floods and storms, call 132 500.

Advertisements
Tenterfield-The Bowlo
Continue Reading

NRTimes Online

Advertisement

National News Australia

Facebook

Latest News

Verified by MonsterInsights