Looking back: nominal and real GDP growth

Image Source: Wikimedia Commons

In the lead-up to the 2013 Budget an issue that attracted much attention was the weakness of Australia’s nominal economy and the impact this would have on government revenue. For three consecutive quarters (June, September and December 2012), annual growth in nominal gross domestic product (GDP) was less than real GDP growth, the first time this had happened in at least the last 50 years. This short note uses the latest Australian Bureau of Statistics national accounts data to take another look at Australia’s nominal and real GDP growth story (figure 1).