GDP recovers
GDP recovered from its -1.9 per cent decline in Q3, to rise by 3.4 per cent in the December quarter, as households were able to spend again and the economies of Sydney and Melbourne reopened.
There's been essentially no immigration for two years, and quarterly GDP per capita rose to a new high of A$20,274.
It's interesting to note how deep the lockdown downturn was, but just how quickly the fiscal stimulus locked in the rapid recovery.
Nominal GDP also recovered in full to hit a record high.
Indeed, nominal GDP recorded double-digit growth for 2021.
And the household saving ratio remained high at 13.6 per cent, representing a huge pool of savings, albeit clearly not even spread across households and cohorts.
The wrap
GDP growth was 4.2 per cent for 2021, which was OK, but not as good as things might have been due to the Q3 lockdowns..
Overall, a decent quarterly result, but we'll have to see how 2022 plays out when the data comes in.
Fixed mortgage rates have already been rising, cooling the housing market, somewhat mitigating the need for the central bank to do anything soon, as policy makers take time to absorb developments.
