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<docID>328352</docID>
<postdate>2024-09-04 12:41:35</postdate>
<headline>Economy grows at a subdued 0.2 per cent in June quarter</headline>
<body><p><img class="size-full wp-image-328353" src="https://citynews.com.au/wp-content/uploads/2024/09/Economy-resized.jpg" alt="" width="900" height="637" /></p>
<caption>Cartoon: Paul Dorin</caption>
<p><span class="kicker-line">By <strong>Poppy Johnston</strong> in Canberra</span></p>
<p><strong>Australia's economy grew by just 0.2 per cent in the three months to June, landing broadly in line with expectations and taking the annual rate to 1.5 per cent.</strong></p>
<p>Economic growth slowed over the course for the last financial year, Australian Bureau of Statistics head of national accounts Katherine Keenan said.</p>
<p>"Excluding the COVID-19 pandemic period, annual financial year economic growth was the lowest since 1991/92 â€“ the year that included the gradual recovery from the 1991 recession," Ms Keenan said.</p>
<p>In the first three months of the year, the Australian Bureau of Statistics recorded a 0.2 per cent rise .</p>
<p>Battling inflation comes at the expense of a weaker economy, with higher interest rates designed to encourage more saving and less spending, lowering demand for goods and services and therefore prices.</p>
<p>The Reserve Bank of Australia was bracing for another weak set of national accounts data and the economists believed a soft result was unlikely to sway the outlook on interest rates.</p>
<p>The central bank maintains underlying price pressures are still strong and interest rate cuts were looking unlikely until next year.</p>
<p>On a per person basis, growth was in decline for the sixth quarter in a row, falling 0.4 per cent.</p>
<p>Household spending fell 0.2 per cent detracting 0.1 percentage points from GDP growth, with less going towards discretionary items.</p>
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