GDP Growth Slumps as House Prices Plunge Amid Interest Rate Hikes

The Albanese Government's economic and housing policies are facing mounting criticism as data reveals stagnant growth and declining house prices.

According to recent figures, Australia's gross domestic product (GDP) eased to 2.1% in the year to June 30, down from March's annual pace of 2.5%. Productivity has also declined, with output for every hour worked shrinking by 0.2% during the last financial year.

Treasurer Jim Chalmers attempted to spin the data as a 'robust result', but experts are sounding alarm bells. The Reserve Bank of Australia's (RBA) inflation target is being breached once again, with July's inflation rate sitting at 3.5%.

Meanwhile, the big four banks - Commonwealth, NAB, and ANZ - have forecast another interest rate hike this year, which would take the cash rate to a 15-year high of 4.6%. This has led to predictions that house prices in Sydney and Melbourne will drop by more than 10%.

Housing Minister Clare O'Neil attempted to deflect criticism, attributing the decline in housing market to cyclical factors. However, Assistant Foreign Minister Matt Thistlethwaite conceded that the Government's tax changes had contributed to the property downturn.