Economic Growth Fails to Boost Living Standards in Australia

Australia's economy grew by 2.1% in the year to June, but this expansion didn't translate into improved living standards for its citizens.

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

The Reserve Bank of Australia views 2% growth as the economy's 'speed limit', and while the latest GDP figure is slightly above this threshold, it's unlikely to change the bank's interest rate outlook.

Consumer spending is a mixed bag, with household discretionary expenditure up 1.4% in the quarter, but other areas like overseas travel saw declines due to increased costs and risks following the Middle East conflict.