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John Kehoe

This is the economic slowdown we had to have

Weaker consumer spending will comfort the RBA, but abysmal labour productivity is undermining the efforts to get inflation under control.

John KehoeEconomics editor
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The big squeeze from higher interest rates on household incomes and discretionary spending is delivering the economic slowdown we had to have.

The economy eked out softish 0.4 per cent growth in the June quarter and expanded 2.1 per cent through the year, according to the national accounts released by the Australian Bureau of Statistics on Wednesday.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
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    Original URL: https://www.afr.com/policy/economy/the-big-squeeze-we-had-to-have-20230906-p5e2b8