Executive summary

  • Growth in the economy bounced back in Q4, so a technical recession was averted
  • The perfect storm of factors that dragged down GDP in the September quarter reversed last quarter
  • A bounce in household spending led the rise in GDP, albeit only via a drop in the savings rate
  • The nominal indicators were even better, with both the terms of trade and national income rising
  • The rebound in GDP makes it less likely the Reserve Bank will trim the cash rate again
  • Longer-term prosperity will only be delivered by a sustained improvement in productivity

Download the full report