If Aus govt spending and migration is propping up GDP, does that mean that we would technically be in a recession?
What I mean is, if the government was not spending so much on wages and the NDIS. If we weren't importing so many immigrants, than we would be in a recession?
This is the current economic situation:
- the private sector is growing "very slowly" currently
- Government spending and investment climbed to a record high share, at 28 per cent of GDP in the September quarter. Source
- Rapidly rising government spending was the single biggest driver of economic growth in the September quarter, as public servant pay rises and household energy bill subsidies pushed state and federal expenditure to a record share of gross domestic product.
The last four quarters (shaded area) have recorded growth rates of: 0.2%, 0.2%, 0.2%, and 0.3%. What would that growth rate be if we take out immigration and record government spending?