Australian living standards are falling – and if it wasn’t for population growth, Australia would be in a recession. The national accounts show the economy barely grew over the three months to September 30, with economic output going backwards by half a per cent per person. Higher interest rates, soaring tax bills and inflationary pressures continue to hit incomes. The amount households are saving is now close to a 16-year low.

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Economists say there might be another rate hike in February, depending on whether inflation data for the December quarter comes in higher than expected. But they say as more evidence emerges that the economy has slowed because of higher mortgage repayments, Australians can expect the Reserve Bank to cut interest rates after June, possibly more than once.

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Australia is currently experiencing a per person recession, with living standards plummeting across the country. According to recent reports, the average Australian is now worse off than they were in 2013, marking the first prolonged decline in living standards in over 25 years.

The “per person recession” refers to the fact that Australia’s economy has been struggling to keep up with population growth, leading to a decline in living standards for each individual. While the overall economy may be growing, it is not growing fast enough to offset the impact of a growing population.

One of the key factors contributing to this decline in living standards is the stagnation of wage growth. Despite the economy continuing to grow, wages have remained largely stagnant, leaving many Australians struggling to make ends meet. In fact, it is estimated that the average Australian worker is earning less today than they were five years ago.

This decline in living standards has also been attributed to rising living costs, particularly in the areas of housing, healthcare, and education. Housing affordability, in particular, has become a major issue, with many Australians finding it increasingly difficult to afford a home in major cities.

The impact of this per person recession is being felt across the country, with many Australians feeling the squeeze on their standard of living. This is particularly concerning as Australia has long prided itself on its high standard of living and quality of life.

The implications of this per person recession are far-reaching, with potential impacts on consumer spending, the housing market, and the overall health of the economy. If living standards continue to decline, it could have serious consequences for the future prosperity of the country.

The government and policymakers are now facing mounting pressure to address these issues and implement measures to reverse the decline in living standards. This may involve addressing the issue of stagnant wage growth, implementing policies to improve housing affordability, and investing in infrastructure and education to support the growing population.

Overall, it is clear that Australia is in the midst of a per person recession, with living standards plummeting and many Australians feeling the impact. It is imperative for the government to take action to address these challenges and ensure that all Australians have the opportunity to prosper in the years to come.