Australian Economy Posts Weakest Growth Since Early 1990s
Excluding the Covid-19 pandemic period, annual growth was the lowest since 1992
2 min
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.
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In a series of social-media posts, the eldest child of David and Victoria Beckham threw stones at the image of a ‘perfect family’.
3 min
David Beckham was at the World Economic Forum in Davos, Switzerland, on Tuesday with Bank of America chief executive Brian Moynihan to promote their new partnership. But all anyone wanted to talk about was his son.
After the obligatory questions about business and the World Cup, a host on CNBC’s “Squawk Box” lobbed Beckham an out-of-left-field query about how young people can preserve their mental health in the age of social media.
“Children are allowed to make mistakes,” Beckham, 50, said. “That’s how they learn. So, that’s what I try to teach my kids, but you have to sometimes let them make those mistakes as well.”
Just a day earlier, his 26-year-old son Brooklyn Beckham had posted a series of accusations about his soccer-famous father and pop-star-turned-fashion-designer mother, Victoria Beckham.
He said that his parents had controlled him for years, lied about him to the press and sought to damage his relationship with his wife, Nicola Peltz Beckham. Their goal, he said, was to affect the image of a “perfect family.”
“My family values public promotion and endorsements above all else,” he wrote on Instagram. “Brand Beckham comes first.”
That brand has been burnished over decades of professional triumphs, tabloid scandals and slick dealmaking.
Recently, both David and Victoria Beckham put their legacies on-screen in docuseries that cast them as hardworking entrepreneurs and devoted parents. Their image appeared stronger than ever. Now their firstborn child is throwing stones.
Representatives for David Beckham, Victoria Beckham and Brooklyn Beckham did not respond to requests for comment. A representative for Nicola Peltz Beckham declined to comment.
In the U.K., the Beckhams are as close as you can get to royalty without sharing Windsor DNA. David is perhaps the most famous English player in soccer history, while Victoria parlayed her Spice Girls fame into a career as a respected fashion designer.
Their partnership was forged in the cauldron of 1990s celebrity gossip, with their every move—in their careers, their bumpy personal lives and their adventurous senses of personal style—subject to tabloid scrutiny.
“They were Taylor Swift and Travis Kelce before Taylor Swift and Travis Kelce,” said Elaine Lui, founder of the website Lainey Gossip.
Over time, the couple became savvy managers of their own brand, a sprawling modern empire including a professional soccer team, fashion and beauty lines, investment deals and commercial partnerships.
In recent years they each released a Netflix docuseries—“Beckham” in 2023, “Victoria Beckham” in 2025—featuring scenes from their private family life. (Brooklyn and Nicola appeared in David’s series, but not Victoria’s.)
“The way they’ve performed their celebrity has been togetherness,” Lui said: Appearing and engaging with the world as a happily married couple, in both relative calm and amid scandal. And as their family grew, their four children became smiling ambassadors for Brand Beckham, too.
Until Monday night. In a series of Instagram Story posts, Brooklyn accused his parents of “trying endlessly to ruin” his marriage to Nicola, an actress and model, and the daughter of billionaire investor Nelson Peltz . Brooklyn declared, “I do not want to reconcile with my family.”
Where Victoria and David seemed to see press scrutiny as part of the job, Brooklyn and Nicola are operating in a manner more typical of their own generation. Brooklyn’s posts call to mind the “no contact” boundaries some children have enforced with their parents in recent years to much pop-psych chatter.
Andrew Friedman, managing director of crisis communications at Orchestra, said he’d advised many clients through family drama. “Going public,” he said, should be a “last resort.”
He’s also warned clients that using social media to air grievances opens a can of worms. “Nuance is not welcome in social-media feeding frenzies,” Friedman said. “Sensational and unusual details will overshadow the central issue.”
Brooklyn, the eldest of the Beckhams’ four children, has built a following in his parents’ image, though without the benefit (or burden) of a steady career.
He’s worked as a model, photographer, cooking-show host and most recently founded a hot-sauce brand. Brooklyn and Nicola went public with their relationship in 2020 and married in a lavish 2022 ceremony at her family estate in Palm Beach, Fla.
Rumors of a family feud flared almost immediately after the wedding, including whispers about the fact that Nicola didn’t wear a dress made by her fashion-designer mother-in-law.
Brooklyn on Monday recounted further grievances related to a mother-son dance and the seating chart. In the months and years that followed, celebrity journalists and fans closely tracked both generations of the family, looking for cracks in the relationship.
But official dispatches from Beckham World suggested that things were just fine. In a scene from the final episode of David’s Netflix series, the Beckham family, including Brooklyn and Nicola, joke around on a visit to their country home. It’s a picture of familial bliss.
“We’ve tried to give our children the most normal upbringing as possible. But you’ve got a dad that was England captain and a mom that was Posh Spice,” David says in voice-over.
“And they could be little s—s. And they’re not. And that’s why I say I’m so proud of my children, and I’m so in awe of my children, the way they’ve turned out.”
When the Writers Festival was called off and the skies refused to clear, one weekend away turned into a rare lesson in slowing down, ice baths included.
From farm-to-table Thai to fairy-lit mango trees and Coral Sea vistas, Port Douglas has award-winning dining and plenty of tropical charm on the side.
