The China Mail - Australian economy Crisis

USD -
AED 3.6725
AFN 65.999982
ALL 80.966223
AMD 364.5091
AOA 917.999725
ARS 1486.387201
AUD 1.422536
AWG 1.8
AZN 1.704144
BAM 1.694551
BBD 2.007165
BDT 123.058128
BHD 0.375771
BIF 2957.289469
BMD 1
BND 1.279037
BOB 11.833766
BRL 5.075797
BSD 0.996547
BTN 95.00457
BWP 13.588178
BYN 2.898979
BYR 19600
BZD 2.004306
CAD 1.40329
CDF 2275.00002
CHF 0.809103
CLF 0.023387
CLP 923.450522
CNY 6.751299
CNH 6.753795
COP 3135.28
CRC 452.623553
CUC 1
CUP 26.5
CVE 95.537428
CZK 20.999199
DJF 177.461628
DKK 6.48358
DOP 57.81694
DZD 132.825029
EGP 51.329696
ERN 15
ETB 159.25132
EUR 0.86735
FJD 2.21395
FKP 0.741868
GBP 0.742475
GEL 2.615021
GGP 0.741868
GHS 11.650082
GIP 0.741868
GMD 73.501128
GNF 8748.315882
GTQ 7.603831
GYD 208.464201
HKD 7.84258
HNL 26.702421
HRK 6.533603
HTG 130.307638
HUF 315.880376
IDR 17990
ILS 3.06295
IMP 0.741868
INR 95.141504
IQD 1305.52126
IRR 1375124.99977
ISK 123.160211
JEP 0.741868
JMD 157.76637
JOD 0.709026
JPY 156.548497
KES 129.100865
KGS 87.450055
KHR 4032.527088
KMF 427.000323
KRW 1429.535031
KWD 0.30914
KYD 0.830471
KZT 472.220176
LAK 22568.892393
LBP 89244.865336
LKR 334.547786
LRD 179.877402
LSL 16.483661
LTL 2.95274
LVL 0.60489
LYD 6.376038
MAD 9.309581
MDL 17.415338
MGA 4261.955613
MKD 53.306705
MMK 2099.556709
MNT 3594.538358
MOP 8.050686
MRU 40.051639
MUR 47.050055
MVR 15.460067
MWK 1728.002495
MXN 17.32064
MYR 4.090297
MZN 63.910262
NAD 16.483518
NGN 1360.579892
NIO 36.675865
NOK 9.48865
NPR 152.005996
NZD 1.698705
OMR 0.384382
PAB 0.996539
PEN 3.377319
PGK 4.4621
PHP 60.989502
PKR 276.76788
PLN 3.735902
PYG 5941.958039
QAR 3.643012
RON 4.551706
RSD 101.709894
RUB 79.361982
RWF 1462.962401
SAR 3.742629
SBD 8.081105
SCR 13.504971
SDG 600.000098
SEK 9.513985
SGD 1.28137
SLE 24.706225
SOS 569.497693
SRD 37.7815
STD 20697.981008
STN 21.227467
SVC 8.719724
SZL 16.481179
THB 33.320101
TJS 9.198085
TMT 3.51
TND 2.929676
TRY 47.540098
TTD 6.766797
TWD 32.254503
TZS 2641.536984
UAH 44.479256
UGX 3742.131689
UYU 40.097905
UZS 11928.970295
VES 745.696402
VND 26287
VUV 118.689846
WST 2.734491
XAF 568.339016
XAG 0.01718
XAU 0.000246
XCD 2.70255
XCG 1.796017
XDR 0.706831
XOF 568.339016
XPF 103.329665
YER 238.29611
ZAR 16.474541
ZMK 9001.196475
ZMW 18.720027
ZWL 321.999592
  • CMSC

    0.0300

    21.84

    +0.14%

  • CMSD

    0.0900

    22.11

    +0.41%

  • RIO

    -0.3300

    96.85

    -0.34%

  • VOD

    -0.3600

    15.78

    -2.28%

  • BTI

    -1.0400

    60.65

    -1.71%

  • BCE

    -0.0200

    21.68

    -0.09%

  • GSK

    -0.3800

    51.69

    -0.74%

  • RYCEF

    -0.3100

    19.55

    -1.59%

  • NGG

    -0.4200

    79.97

    -0.53%

  • RBGPF

    0.0000

    69.21

    0%

  • BCC

    1.0000

    76.38

    +1.31%

  • JRI

    0.0900

    12.96

    +0.69%

  • AZN

    -1.7000

    169.64

    -1%

  • RELX

    -1.1900

    35.42

    -3.36%

  • BP

    1.0000

    45.22

    +2.21%


Australian economy Crisis




Australia is facing a suite of troubling economic trends. Growth is slowing, prices are rising and people’s living standards are slipping. Despite a headline unemployment rate that remains around 4.3 %, officials warn that the economy may be trapped in a slow‑growth, high‑inflation environment unless investment and productivity improve. Households are feeling the strain as wages fail to keep pace with costs and the housing market becomes increasingly inaccessible.

Official national accounts show that the economy grew by only 0.6 % in the June 2025 quarter and by 1.3 % over the year; the terms of trade fell and the household saving ratio slid to 4.2 %. Living cost indexes rose between 0.6 % and 1.5 % in the September quarter, with housing and recreation costs making the biggest contribution. Consumer prices increased 1.3 % in the September quarter and 3.2 % over the year, while wages grew only 0.8 % in the June quarter and 3.4 % annually. The resulting squeeze on household budgets is causing real incomes to stagnate.

Underlying inflation has accelerated to around 3 %, reflecting higher electricity, fuel and services prices. The September inflation pulse overshot forecasts and dashed hopes of a quick rate cut; electricity prices jumped 9 % in the quarter, holiday travel costs rose 2.5 % and local government charges climbed 6.3 %. Analysts note that real wages are unlikely to regain their 2011 purchasing power until the latter part of this decade.

Housing is the most visible symptom of the malaise. About one‑third of households rent, and median advertised rents have increased by roughly 48 % over the past decade; they rose 5.5 % between the first quarter of 2024 and the first quarter of 2025. More than 1.26 million low‑income households spend over 30 % of their disposable income on housing, including 44.5 % of mortgage holders and 20.5 % of renters. Median house prices have risen by 8.6 % in the past year, far outpacing incomes, and home values rose 1.1 % in October alone. Investor lending now accounts for two in every five new home loans, with the value of these loans rising 17.6 % and calls emerging for regulators to curb landlord credit growth. A government scheme allowing first‑home buyers to borrow with a 5 % deposit effectively grants buyers the equivalent of a $120 000 deposit on an $800 000 home; critics warn that this incentive fuels investor speculation and pushes up prices.

Mortgage stress is spreading. Research shows that 27.9 % of mortgage holders were at risk of stress in the three months to August 2025, with 17.9 % extremely at risk. Nearly one million Australians now work two or more jobs – 6.6 % of the employed population – because rising living costs and inflation are outpacing wage growth. Taking on additional employment has become a coping strategy for households trying to meet mortgage repayments and other bills.

Young Australians are particularly pessimistic. A national survey found that 85 % of young people experienced financial difficulty in the past year and almost four‑fifths believe they will be worse off than their parents. Fewer than half expect to own a home, and about 44 % have experienced unemployment while 60 % have endured underemployment. Poverty is widespread: more than one in seven people (14.2 %) and one in six children live below the poverty line, defined at 50 % of median after‑tax household income, and more than 57 % of low‑income renters are in housing stress. Rents in major cities have risen between 34 % and 41 % since 2021, deepening financial hardship.

Beneath the veneer of a modestly strong labour market lie deepening structural problems. Per‑capita economic output has contracted at various points over the past two years, and productivity growth has slowed. Officials acknowledge that without a revival of investment and productivity, the country risks a prolonged period of sluggish growth and persistent inflation. Rising housing costs, real wage stagnation, mortgage stress and youth pessimism all point to an economy that is leaving many behind. Unless these issues are addressed with urgency, something terrible will indeed continue to happen in the Australian economy.