Australian Economy Posts Weakest Growth Since Early 1990s

Australia’s commodity-rich economy recorded its weakest growth momentum since the early 1990s in the second quarter, as consumers and businesses continued to feel the impact of high interest rates, with little expectation of a reprieve from the Reserve Bank of Australia in the near term.

The economy grew 0.2% in the second quarter from the first, with annual growth running at 1.0%, the Australian Bureau of Statistics said Wednesday. The results were in line with market expectations.

It was the 11th consecutive quarter of growth, although the economy slowed sharply over the year to June 30, the ABS said.

Excluding the Covid-19 pandemic period, annual growth was the lowest since 1992, the year that included a gradual recovery from a recession in 1991.

The economy remained in a deep per capita recession, with gross domestic product per capita falling 0.4% from the previous quarter, a sixth consecutive quarterly fall, the ABS said.

A big area of weakness in the economy was household spending, which fell 0.2% from the first quarter, detracting 0.1 percentage point from GDP growth.

On a yearly basis, consumption growth came in at just 0.5% in the second quarter, well below the 1.1% figure the RBA had expected, and was broad-based.

The soft growth report comes as the RBA continues to warn that inflation remains stubbornly high, ruling out near-term interest-rate cuts.

RBA Gov. Michele Bullock said last month that near-term rate cuts aren’t being considered.

Money markets have priced in a cut at the end of this year, while most economists expect that the RBA will stand pat until early 2025.

Treasurer Jim Chalmers has warned this week that high interest rates are “smashing the economy.”

Still, with income tax cuts delivered at the start of July, there are some expectations that consumers will be in a better position to spend in the third quarter, reviving the economy to some degree.

“Output has now grown at 0.2% for three consecutive quarters now. That leaves little doubt that the economy is growing well below potential,” said Abhijit Surya, economist at Capital Economics.

“But if activity does continue to disappoint, the RBA could well cut interest rates sooner,” Surya added.

Government spending rose 1.4% over the quarter, due in part to strength in social-benefits programs for health services, the ABS said.

Art can transform more than just walls—it shapes mood, evokes memory, and elevates the everyday. Discover how thoughtfully curated interiors can become living expressions of personal meaning and refined luxury, from sculptural furniture to bespoke murals.

Artful Abundance: The Sophisticated Joy of Artful Interiors

Imagine a hushed hospital corridor, its sterile walls awash in the glow of flickering fluorescent lights. In that unexpected moment, a solitary Monet painting emerged—a luminous tableau of delicate lilies dancing in quiet defiance.

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That moment continues to resonate with me—a vivid reminder that art transcends mere aesthetics to become a profound catalyst for emotional healing and inspiration. It is this transformative experience that fuels my passion as a biophilic interior designer.

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2. Art as Wellness: A Daily Ritual of Rejuvenation

At its core, art is a daily ritual that renews both mind and spirit. Scientific research consistently confirms that nature-inspired art reduces stress, lowers blood pressure, and kindles creativity.

The simple act of beholding a tranquil landscape or a subtle floral motif transforms your space into a private retreat, offering solace amidst a hectic world.

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3. Bespoke Brilliance: Celebrating Your Unique Narrative

Luxury design is profoundly personal. Bespoke art transcends mass-produced décor by capturing your unique story—whether through a custom mural reminiscent of your favourite botanical garden or silk wallpapers that evoke the allure of exotic landscapes.

Each personalised creation turns your walls into a living narrative of cherished memories and distinctive taste. Consider how a thoughtfully designed space can reflect your individuality and elevate your living experience.

4. Sculptural Elegance: Redefining Spatial Dynamics

Art is not confined to two dimensions. Three-dimensional sculptural works bring vitality to interiors by adding depth, texture, and tactile allure.

Picture a gracefully sculpted piece—a marble table echoing the gentle rhythm of ocean waves or a repurposed bronze branch serving as an elegant room divider.

Such statement sculptures command attention while seamlessly integrating form with function and providing a natural conversation starter in any refined space.

5. Architectural Artistry: When Structure Meets Art

A truly sophisticated home elegantly merges art with architecture. Imagine a residence where bespoke staircases curve with elegance, where hand-carved wooden doors evoke the intricate beauty of nature, and where expansive windows frame breathtaking vistas.

In these spaces, every architectural detail contributes to a cohesive canvas of artistic expression. As you envision your own home, consider how your surroundings can be thoughtfully designed to reflect both beauty and purpose.

6. Furniture as Functional Art: Merging Practicality with Mastery

In luxury interiors, even the functional becomes exceptional through artful design. Consider a one-of-a-kind, hand-carved pink marble swivel chair—a masterpiece where practicality meets refined craftsmanship.

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7. Digital Sophistication: The Future of Artistic Expression

In an age defined by rapid technological advancement, digital art installations offer a contemporary twist on traditional forms.

High-resolution displays now present dynamic landscapes—a cascade of waterfalls, the quiet majesty of a forest, or a serene digital ocean vista—that adapt and evolve with your environment.

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8. Luxurious Textiles and Furnishings: The Essence of Understated Elegance

Luxury is often revealed in the details: the textures, colours, and fabrics that together create a haven of understated splendour.

Bespoke silk cushions with intricate botanical embroidery, sumptuous velvet throws that evoke tropical charm, and bedding that mirrors the ethereal beauty of cloudscapes all contribute to an atmosphere of refined elegance and comfort.

Every tactile detail is chosen to evoke warmth and stand as a testament to your taste for excellence.

9. Refined Heritage: Honouring Timeless Craftsmanship

In the realm of luxury, tradition and modernity exist in perfect harmony. Integrating timeless antiques—such as a rare Vladimir Kagan couch or a coveted Hans Wegner chair—with contemporary design creates a dialogue that honours both heritage and innovation.

These storied pieces carry with them a legacy of masterful craftsmanship, adding layers of significance and depth to your living environment. They remind us that true elegance is built upon a foundation of enduring quality.

10. The Art of Personal Meaning: Crafting Your Legacy

Ultimately, art is the language through which you express your unique legacy.

Every carefully chosen piece reflects a part of your personal journey, turning your living space into a narrative as emotionally resonant as it is visually stunning.

It imbues your environment with memories, aspirations, and the essence of who you are—a living masterpiece that evolves with time.

Reflect on how these elements might not only beautify your home but also stand as timeless expressions of your personal story.

Now is the moment to immerse yourself fully in the joy of art. Elevate your surroundings and transform your residence into your greatest masterpiece.

Your heart, your legacy, and your space deserve nothing less than extraordinary artistry.

Ozge Fettahlioglu is the founder of Cocoplum | Biophilic Design Studio and Boxareno | Custom Modular Constructions. A wellness and biophilic design leader, she creates bespoke spaces that inspire, heal, and elevate daily living. Ozge is also a board member of Biophilic Cities Australia.