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As Australia’s economy continues to recover, so does its list of setbacks

Australia saw a 0.9 percent QoQ GDP growth during the second quarter on the back of consumer spending and net exports

Treasurer Jim Chalmers noted that Australia, despite the current hindrances, will fare better than other countries. Ira Sokolovskaya/Shutterstock

Australia saw a 0.9 percent QoQ GDP growth during the second quarter on the back of consumer spending and net exports.

Household consumer spending continues to expand, adding 1.1 percentage points to the headline figure, according to THINK. This will need to be reduced if inflation is to be suppressed.

On the other hand, net exports did most of the heavy lifting in Q2, as imports did not contribute much during the quarter.

Data from the Australian Bureau of Statistics showed that GDP increased by 3.6 percent over the previous year and 0.9 percent for the quarter.

Australia’s export prices increased by 8.8 percent due to rising commodity prices, which were partly driven by the surge in energy prices caused by Russia’s war on Ukraine, reported The Guardian.

Mineral ores, other mineral fuels, and rural commodities were the key drivers of the 4.2 percent increase in goods exports. Services exports, on the other hand, increased by 13.7 percent, led by travel and transportation services.

More: Australia revises growth forecasts due to slow global economic expansion

However, Treasurer Jim Chalmers notes that while the economy recovers from the disruption of the pandemic, it is also held back by a growing number of challenges, including skills shortages and declining wages.

Nevertheless, he noted that Australia, despite the current hindrances, will fare better than other countries, reported news.com.au.

“I’m optimistic and confident about the future but realistic,’’ he said. Also adding, “That means focusing on areas where our policies and sensible investments can make a meaningful and realistic difference without making life harder for the independent Reserve Bank. It means responsible cost-of-living relief; investing in our people, their skills, and their future; and beginning the hard task of longer-term budget repair.”

Rather than proposing brand-new policies in the budget, Chalmers suggests that growing wages means training workers for better-paying jobs; refining childcare policies to make it easier to earn more; and advocating for pay increases in the care sector.

The Property Report editors wrote this article. For more information, email: [email protected].

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