Australians have been dipping into their piggy banks just to make ends meet

Just a month ago, the Reserve Bank was noting that household savings were increasing, a sign that people were socking away cash in their bank accounts to take advantage of higher interest rates.Credit:So confident was it, the bank revised up its forecasts for the nation’s household savings ratio – the proportion of net disposable income that is not consumed by households – in its most recent outlook on the economy, from 0.9 per cent to 3.2 per cent for the final three months of 2023.

In the September quarter of last year, when many Australians discovered they owed the Tax Office cash because of the end of the low- and middle-income tax offset, it was just 0.2 per cent. The last time a 0.2 per cent savings rate was recorded was in late 2007. In other words, to keep buying the same amount of stuff, Australians are dipping into their piggy banks, jam jars and online accounts to make ends meet.

Growth at 0.1 per cent is abysmal. GDP per capita has fallen by 1.6 per cent since it peaked in mid-2022. Outside a deep recession, you don’t see that sort of fall in per capita GDP.

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why cricket needs to pitch its growth plan to Chinese AustraliansThere are almost 1.4 million Australians with Chinese ancestry. Yet, of the 54 people with diverse backgrounds named Cricket Australia ambassadors, none have professional ties to China.
Source: theage - 🏆 8. / 77 Read more »

Why cricket needs to pitch its growth plan to Chinese AustraliansThere are almost 1.4 million Australians with Chinese ancestry. Yet, of the 54 people with diverse backgrounds named Cricket Australia ambassadors, none have professional ties to China.
Source: brisbanetimes - 🏆 13. / 67 Read more »

GDP growth falls to just 0.1% as household cutbacks put handbrake on Australia’s economyAnnual economic growth is down to 1.1%, lower than economists predicted, ABS GDP figures show
Source: GuardianAus - 🏆 1. / 98 Read more »

Australian economy records weakest growth in almost three yearsEconomists had been expecting either very weak or no growth in the country&x27;s GDP.
Source: 9NewsAUS - 🏆 10. / 72 Read more »

Teenager who murdered Emma Lovell in 2022 Boxing Day stabbing sentenced to jailThe teenage boy who murdered mother-of-two Emma Lovell outside her North Lakes home, north of Brisbane, is sentenced to 14 years in jail.
Source: abcnews - 🏆 5. / 83 Read more »

Ajla Tomljanovic handed wildcard to make first French Open appearance since 2022After missing the tournament last year, Ajla Tomljanovic will make her first appearance at Roland-Garros since 2022 after receiving a wildcard.
Source: abcnews - 🏆 5. / 83 Read more »