Government spending is contributing more than households. That generally happens only during recessions
The latest GDP figures released on Wednesday suggest on the surface the overall economy is doing better, but further inspection highlights the underlying weakness. The domestic private sector is in a dire state, having now shrunk for four consecutive quarters the worst result since the 1990s recession and the economy is now more dependent on government spending to keep it afloat than at any time since the GFC .
First the good news things are better than we previously thought. The GDP figures contained some fairly significant revisions of past data, based on more accurate underlying data.
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