Economy grows by 0.2 percent in September quarter

Australian gross domestic product (GDP) rose by 0.2 percent in the September quarter, taking the annual rate of economic growth to 2.1 percent, according to new figures from the Australian Bureau of Statistics (ABS). Katherine Keenan, ABS head of national accounts, said: “This was the eighth straight rise in quarterly GDP, but growth has slowed over 2023.”

Ms Kennan said the quarterly increase was due to a rise in government spending and investment while household spending remained flat. Government expenditure rose by 1.1 percent in the September quarter following an 0.6 percent rise in the June quarter.

“The growth in government expenditure was driven by social benefits to households, including the Energy Bill Relief Fund rebates, and extra payments for childcare, aged care and pharmaceutical products,” she said. The energy rebates had a big impact. The ABS said electricity prices rose by 4.2 percent during the quarter. Without the rebates, they would have risen 18.6 percent.

The Federal Government also spent more on defence, funding international training exercises held in Australia during the quarter. “National and state public corporations increased their capital investment by 8.9 percent, with boosted investment in transport, communication and utilities projects,” Ms Keenan said.

Wages including superannuation rose by 2.6 percent due to an increase in the super guarantee rate from 10 percent to 10.5 percent and a bump in the minimum wage alongside low unemployment. The wage price index rose 1.3 percent, which was the fastest quarterly rise on record. More jobs had wage movement and the average change in wages was significantly higher. The unemployment rate in the month of September was 3.6 percent.

Inflation rose by 1.2 percent during the September quarter, with the biggest contributors being higher petrol prices, rents, new dwelling purchases by owner-occupiers and electricity prices. Spending on fresh food fell 0.2 percent, alcohol purchases from bottle shops fell for the fifth consecutive quarter and gambling taxes fell 6.9 percent after a similar fall in the June quarter. Those who could afford it continued the post-COVID revenge travel trend. Travel services imports rose by 19.5 percent as more Australians headed overseas during the Northern Hemisphere summer. Travel exports grew 4.4 percent during the quarter due to the FIFA Women’s World Cup World Cup and a record level of international student enrolments.

Cost-of-living pressures fuelled by sticky inflation and high interest rates pushed the household saving-to-income ratio to its lowest level since 2007. The ratio fell for the eighth consecutive quarter, with Australians now only saving 1.1 percent of their incomes.

The impact of homeowners coming off fixed home loan rates was reflected in the 7.6 percent increase in interest paid by mortgagees over the quarter. The Reserve Bank did not raise the cash rate during the September quarter. Renters continued to do it tough, with rents now up 7.6 percent on an annual CPI basis, which is the largest annual increase since 2009. Australians also paid 7.6 percent more income tax due to the ending of the low and middle income tax offset.

Bhutan has become the first country in the world to implement a national-level cryptocurrency payment system for tourism, marking a major milestone in digital innovation and travel.

Launched in partnership with Binance Pay and Bhutan’s fully digital DK Bank, the system enables travellers with Binance accounts to enjoy a seamless, end-to-end crypto-powered journey. More than 100 local merchants, from hotels and tour operators to small roadside vendors in remote villages, are already live on the system.

“This is more than a payment solution — it’s a commitment to innovation, inclusion, and convenience,” said Damcho Rinzin, Director of the Department of Tourism, Bhutan.

“It enables a seamless experience for travellers and empowers even small vendors in remote villages to participate in the tourism economy.”

Using supported cryptocurrencies, tourists can now pay for nearly every part of their trip, including airline tickets, visas, the Sustainable Development Fee (SDF), hotel stays, monument entry fees, local guides, and shopping, all through secure static and dynamic QR code payments.

Binance CEO Richard Teng praised the move, saying: “We are excited to partner with Bhutan as we are not only advancing the use of cryptocurrencies in travel but also setting a precedent for how technology can bridge cultures and economies. This initiative exemplifies our commitment to innovation and our belief in a future where digital finance empowers global connectivity and enriches travel experiences.”

Known as the “Kingdom of Happiness,” Bhutan has long prioritised Gross National Happiness over GDP, with a strong focus on sustainability, cultural preservation, and societal well-being. The new system aligns with these values by reducing payment friction and bringing financial inclusion to local communities.

Among the key features of the system:

Seamless Experience: Tourists can pay with crypto for all travel-related expenses.
Inclusive Reach: Small vendors, even in remote areas, can accept QR code payments.
Lower Fees: Transactions cost significantly less than traditional payment methods.
Comprehensive Support: More than 100 cryptocurrencies supported, including BNB, BTC, and USDC.
Secure and Instant: Real-time confirmations, 2FA, and encrypted transactions via the Binance app.

Behind the local settlement mechanism is DK Bank, Bhutan’s first fully digital bank. Licensed by the Royal Monetary Authority of Bhutan, it aims to deliver accessible financial services to all, including marginalised and unbanked communities.

The launch is being hailed as a bold step forward in integrating digital finance with global tourism — one that could set the benchmark for other nations looking to modernise the travel experience while empowering their local economies.

Economy grows by 0.2 percent in September quarter

Households rein in spending but government expenditure goes up as cost-of-living rebates kick in

Bhutan is pioneering a new frontier in travel by allowing tourists to pay for flights, visas, hotels and even fruit stalls using cryptocurrency via Binance Pay.