Australia’s economy is now more than 5% bigger than it was before COVID-19, a better performance than most comparable economies.
Households have been saving less in order to spend more. Since the start of this year, household saving has slipped from 13.5% to a more normal 8.7%.
In the June quarter profits again grew faster than wages. The national accounts show the compensation of employees (wages plus super) grew 7% over 2021-22, well above the official wage growth figure of 2.6%.
Household saving ratio continues to decline as consumption opportunities increase
The household saving ratio declined from 11.1% to 8.7%, remaining slightly above pre-pandemic levels.