The China Mail - Australian economy Crisis

USD -
AED 3.672501
AFN 62.514885
ALL 82.208495
AMD 376.925472
ANG 1.789731
AOA 917.000268
ARS 1407.464034
AUD 1.412559
AWG 1.795
AZN 1.695771
BAM 1.668721
BBD 2.016365
BDT 122.336318
BGN 1.647646
BHD 0.377346
BIF 2971.340324
BMD 1
BND 1.273
BOB 6.932505
BRL 5.189097
BSD 1.001101
BTN 91.57747
BWP 13.25404
BYN 2.900791
BYR 19600
BZD 2.01343
CAD 1.367935
CDF 2210.000505
CHF 0.778945
CLF 0.022395
CLP 884.169978
CNY 6.85815
CNH 6.899975
COP 3788.76
CRC 471.150359
CUC 1
CUP 26.5
CVE 94.081159
CZK 20.73085
DJF 178.271887
DKK 6.38103
DOP 60.118172
DZD 130.35897
EGP 49.213783
ERN 15
ETB 156.707095
EUR 0.85408
FJD 2.22375
FKP 0.741651
GBP 0.74585
GEL 2.679762
GGP 0.741651
GHS 10.736285
GIP 0.741651
GMD 72.497095
GNF 8780.604344
GTQ 7.678952
GYD 209.433375
HKD 7.82202
HNL 26.492609
HRK 6.433097
HTG 131.114951
HUF 324.409789
IDR 16864
ILS 3.08311
IMP 0.741651
INR 91.58655
IQD 1311.490796
IRR 1314314.999843
ISK 122.729983
JEP 0.741651
JMD 156.83832
JOD 0.709039
JPY 157.608026
KES 129.130182
KGS 87.445204
KHR 4016.108803
KMF 417.000249
KPW 900.000007
KRW 1467.03501
KWD 0.30713
KYD 0.834275
KZT 498.724435
LAK 21430.24739
LBP 89650.479721
LKR 309.573987
LRD 183.702983
LSL 16.078359
LTL 2.95274
LVL 0.60489
LYD 6.351427
MAD 9.222585
MDL 17.179521
MGA 4180.780355
MKD 52.620123
MMK 2099.892679
MNT 3568.336801
MOP 8.06624
MRU 39.915871
MUR 46.640099
MVR 15.44972
MWK 1736.040306
MXN 17.33385
MYR 3.927014
MZN 63.904969
NAD 16.078497
NGN 1369.340065
NIO 36.841903
NOK 9.561495
NPR 146.524406
NZD 1.68238
OMR 0.384491
PAB 1.001177
PEN 3.365443
PGK 4.307929
PHP 58.20301
PKR 279.819541
PLN 3.61873
PYG 6462.402198
QAR 3.661402
RON 4.353299
RSD 100.224015
RUB 77.498036
RWF 1463.106659
SAR 3.752997
SBD 8.045182
SCR 14.208513
SDG 601.501546
SEK 9.13641
SGD 1.273635
SHP 0.750259
SLE 24.550518
SLL 20969.49935
SOS 572.167213
SRD 37.72201
STD 20697.981008
STN 20.903991
SVC 8.760202
SYP 110.524979
SZL 16.072967
THB 31.469891
TJS 9.529631
TMT 3.5
TND 2.914699
TOP 2.40776
TRY 43.952399
TTD 6.784043
TWD 31.523503
TZS 2549.999732
UAH 43.319511
UGX 3633.850525
UYU 38.497637
UZS 12203.768723
VES 416.836205
VND 26165
VUV 118.983872
WST 2.715907
XAF 559.675947
XAG 0.011053
XAU 0.000187
XCD 2.70255
XCG 1.804313
XDR 0.691772
XOF 559.680722
XPF 101.756377
YER 238.550251
ZAR 16.12765
ZMK 9001.201322
ZMW 19.121524
ZWL 321.999592
  • CMSC

    0.0900

    23.54

    +0.38%

  • BCC

    -1.6600

    81.08

    -2.05%

  • BTI

    -0.2550

    62.4

    -0.41%

  • NGG

    0.2600

    94.03

    +0.28%

  • GSK

    -0.6850

    58.445

    -1.17%

  • AZN

    -3.9500

    204.45

    -1.93%

  • RIO

    -0.5550

    98.785

    -0.56%

  • CMSD

    0.0300

    23.31

    +0.13%

  • RBGPF

    0.1000

    82.5

    +0.12%

  • BCE

    -0.0030

    26.307

    -0.01%

  • RYCEF

    -0.1900

    18.13

    -1.05%

  • JRI

    0.0950

    13.2515

    +0.72%

  • VOD

    -0.2150

    15.145

    -1.42%

  • BP

    0.2300

    39.09

    +0.59%

  • RELX

    -0.2700

    34.52

    -0.78%


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.