Annual GDP growth is minimal, with GDP per capita declining for six consecutive quarters

Economic growth remained subdued in Q2 2024, with GDP rising by just 0.22%, reflecting ongoing challenges. Annual GDP growth for FY24 was only 1.49%, one of the smallest gains in over 30 years (excluding the pandemic period). With GDP per capita declining for the sixth straight quarter, cost of living pressures are mounting.

CPI increased by 1.02%, outpacing wage growth at 0.80%, forcing households to dip into savings, which remained low at 0.6%. Discretionary spending dropped by 1.1%, while essentials rose by 0.5%.

The housing market faces similar challenges, with affordability issues hindering new dwelling investment. Despite a slight rise in building approvals, the outlook remains uncertain, with housing starts set to drop further. This will further exacerbate the rental market shortage