When the Only Economic Growth Is in Your Electricity Bill
Well, isn’t this a classic Aussie yarn. Imagine being told the economy’s growing—then finding out it’s doing so with all the enthusiasm of a kangaroo in a headlock.
According to the latest numbers from the ABS, the March quarter GDP rose just 0.2%, down from 0.6% in December. That’s like giving someone a handshake and pretending it’s a hug. And to add a bit more sting, that tiny bump didn’t even shift annual growth—still stuck at a sad 1.3%.
So, who’s to blame? Everyone, really. Households, businesses, trade, even the government—no one’s pulling their economic weight.
Aussie Economy: Breakdown of What’s Broken
| Economic Sector | March 2025 Performance | Compared to Dec 2024 | Contribution to GDP |
|---|---|---|---|
| Household Spending | Flat (0.0%) | ↓ from +1.6% | Weak lift |
| Private Investment | -0.1% in buildings/engineering | ↓ from +0.2% | Negative |
| Net Trade | -0.1 percentage points from GDP | ↓ from +0.2ppt | Negative |
| Government Spending | Fell, detracted -0.1ppt from growth | ↓ from +0.2ppt | Negative |
| Overall GDP | +0.2% Q/Q | ↓ from +0.6% | Weak |
| GDP per Capita | Fell for 9 of last 11 quarters | That’s a recession, mate | Negative |
What’s Driving the Slight Growth?
Would you believe it—electricity bills. With state rebates ending, power bills shot up, and so did energy-related household spending. That’s technically “growth,” but it’s the kind of win that makes your wallet cry.
And mortgage holders finally caught a tiny break with a February rate cut that slightly reduced repayments. Enough to boost household disposable income per capita back above where it was in March 2020.
“It’s the first real improvement in living standards in years,” Greg Jericho says. But don’t pop the bubbly yet—this tiny bump comes after 63% of the living standard drop since 2022 was tied to mortgage hikes.
Custom Chart: GDP Contributors in the March 2025 Quarter
| Sector | Contribution to GDP (%) | Trend vs. Dec 2024 |
|---|---|---|
| Household Consumption | +0.1% | Down |
| Government Expenditure | -0.1% | Down |
| Net Exports (Trade) | -0.1% | Down |
| Private Capital Investment | -0.1% | Down |
| Total GDP Growth | +0.2% | Down |
Meanwhile at the RBA…
Let’s just say the RBA’s forecasts haven’t exactly been spot on. Back in April they said growth had “picked up.” Nope. In May, they reckoned it was picking up “a little further.” Not unless you count 1.3% as sprinting.
To hit the RBA’s June forecast of 1.8% annual growth, we’d need a 0.7% Q2 GDP surge—the biggest quarterly jump in three years. Mate, even Skippy wouldn’t bet on that.
“The RBA needs to stop staring at outdated spreadsheets and cut rates like yesterday,” says Jericho.
Aussie Humor, Served with Economic Reality
❝If this economy were a meat pie, it’s mostly air and the sauce leaked out.❞
So what we’ve got is a technically rising standard of living but only because interest payments eased slightly, and households forked out more for power. Every other part of the economy? On a smoko.
