Australia's Economy Grows, But People's Living Standards Stagnate

Australia's economy grew by 2.1% in the year to June, but people's living standards are not keeping pace.

The Australian Bureau of Statistics reported that gross domestic product (GDP) expanded by 0.4% in the June quarter, with spending growth driven by record sales of imported electric vehicles.

The economy's performance is in line with Reserve Bank of Australia forecasts, and it's unlikely to change the outlook for interest rates.

According to the bureau, overall growth remains subdued, with spending growth and business investment only in 'pockets' of the economy. A significant proportion of demand was met from imports rather than production in Australia.

The average Australian's living standards are not improving, as measured by real net national disposable income per capita, which is around where it was five years ago.