Recessions are commonly described as two consecutive quarters of negative growth. Australia has avoided that thanks to surging population growth,but once you take into account all those extra residents,economic output per person has fallen since the start of the year,making it a per capita recession.
While the economic pie got a little larger over the past two quarters,each slice of it got a little thinner.
In dollars and cents,every slice of pie is $118 thinner since Christmas.
Pressed on what Australians should make of his per capita recession,Chalmers on Wednesday went to an Excel spreadsheet.
“About every fourth quarter,on average,has seen real per capita GDP growth going backwards. So it’s not especially unusual,” he replied.
Throwing in the “on average” caveat was the immediate giveaway that falling economic output per person is anything but average.