Sydney, Australia – when Racheal Clayton attended the number one school in Sydney, Australia, in the apogee of the 2007-2009 world monetary crisis, the Australian economy preference for governments around the world.
Unlike all other developed primary economies, Australia has emerged from the worst economic slowdown since the great depression entered the recession.
Today, Clayton, 22, sails in the global of the class paintings, and an economy whose star shines much less on the foreign scene.
Far from being the preference of the evolved world, the Australian economy has slower to its slowest rate since the early 1990s, the Covid-19 Pandemia, and delaying through several of its classmates.
The Gross Domestic Product of Australia (GDP) higher 0. 8% in the annual sliding of the first 3 quarters of 2024, opposite to 3. 1% and 1% in the United States and the European Union.
Without the demographic expansion aimed at immigration, Australia would be in recession because according to the expansion of capita it has been negative for seven consecutive quarters.
Like many of his classmates, Clayton, a university graduate in 2022, is pessimistic about the country’s economy.
Even if you have a full -time task in public relations and lives in the house with your parents, you have taken a component concert as a non -public coach to cover their expenses, adding food, billing insurance and the charge of running a car.
“I liked living at home. It is not as if I had to pay the rent, but I still have to pay for other things in life, “Clayton told Al Jazeera.
“If I take a short break in my part -time work, myself in difficulty,” he said.
Like many countries, Australia’s costs jumped after COVVI-19, the inflation that culminated with 7. 8% in December 2022, while wages stagnated.
While OECD wages have higher on average at 1. 5% since 2019, Genuine salaries in Australia still had a 4. 8% decrease than degrees prior to calling from last year, to OECD data.
Clayton said he had high expectations of having a space because it is difficult to save cash and the assets is so unaffordable in Australia, one of the world’s beloved markets.
“I [my generations] focus on the security search in other ways,” he said.
“It’s only [financially] sure, it’s like an option, so you can also use your money. “
After emerging from the recession in 1992, Australia registered 28 consecutive years of uninterrupted economic expansion until the global was affected through Covvid in 2020.
Since it has been limited to the pandemic, the economy has struggled to take off in the midst of higher interest rates, productivity skin and deceleration in the Australian export required by iron mineral.
Even if Australia is not officially in recession, it is smaller than those that are difficult to pay their expenses despite a complete task and a decent income.
Before Christmas, an investigation carried out through the Australian Salvation Army revealed that an Australian 4 feared that their young people lacked gifts and that 12% feared that their young people were missing food.
Much of the monetary tension caused through higher loan invoices caused through successive interest rates increases through the Australian Bank (RBA).
After reducing the reference rate to almost 0 in reaction to the pandemic, the highest RBA is 4. 35% speed in a series of movements aimed at inflation.
In September, Treasurer Jim Chalmers stressed the surroundings of higher interest rates as a main cause of the deceleration, saying that the walks “broke the economy. “
Matt Grudnoff, the main economist of the Thought Group of the Australian Institute, said that the RBA had played “a role” in the country’s existing economic difficulties.
“We know that customer spending is low in Australia at the moment, which represents more than part of GDP. And then, while customers in Australia spend, the economy will grow very, very slowly, “Grudnoff told Al Jazeera.
Grudnoff said that the shortage of existing housing source contributes to the difficulties facing many Australians.
Australia is expected to face a deficit of 106,300 population until 2027, to a report by the National Corporation of Finance and Housing Investment (NHFIC).
Grudnoff said that scarcity, which contributes to the outbreak of costs and rents of genuine goods, has been a challenge for years, but attracted national attention as a result of the pandemic.
“I think it’s just because we didn’t have superior inflation [before],” said Grudnoff.
“The truth is that until you have a crisis, it is easy to forget about the problems,” he added.
With an imminent federal election next year, the politicians of the two main parties planned migration as a means to facilitate life position.
Given the shortage of primary hard work after the pandemic, Australia softened her obstacles to foreign academics and migrants qualified in 2022, which led to a record record for 547,200 arrivals the following year.
Given the development of housing pressures and tense infrastructure, the Labor Party Government announced in 2023 that the intake of permanent migrants to the titles prior to the couple and the following year presented a roof to foreign students of arrival.
While the government estimates migration by 2024-2025 to 340,000, around 200,000 less than in 2023, it would still be 80,000 more than its objective.
Trent Wiltshire, deputy director of the Economic Prosperity and Democracy program of the Gratan Institute, said that migration is a blessing to the economy and not the cause of its underlying weaknesses.
“Our consistent with Capita’s life criteria recently backed down and has been stagnant for some time. Therefore, it was also a problem prior to cooking, the fact that our economy had no paintings as well as it should. Therefore, we want the reforms to obtain a better productivity to start taking our living levels, “Wiltshire said.
“This is not the cause of weakness,” Wiltshire added, referring to the effect of migration in the expansion of expansion. “It is a vital difference of doing. “
At the end of December, the Labor Government its average economic perspectives, predicting the expansion of GDP of 1. 75% and a deficit of $ 26. 9 billion in 2024-25, the first since it arrived here to force in 2022.
Nicki Hutley, an independent economist, said that many Australians stand up due to the lack of expansion in productivity and a “robust and intelligent discussion about taxes and income. “
Hutley said that the successive for the governments of expenses and investments had established the basic concepts of the existing weakness in the economy.
While other countries had used pandemia as an opportunity to make investments in long -term expansion engines, such as green energy, Australia had spent effective without any long -term feeling of vision, he said.
“We spend effective to build houses that would have been built anyway. We did not do it, we did not use this source of income judiciously, and now we are back precisely where we started, “Hutley told Al Jazeera. ” And finally, Australia is a small open economy that depends on other countries such as China. We have to diversify more. “
“And I think this is the lesson that the country has already taken after Covid, [which] is the diversification of its import and export markets,” he added.
“But also that you will have to make sure the investment and have the right executives to do so. “