CANBERRA, March 1 (Xinhua) -- Australia's economic growth slowed in the final quarter of 2022, national accounts data has revealed.
According to figures published by the Australian Bureau of Statistics (ABS) on Wednesday, gross domestic product (GDP) grew by 0.5 percent between September and December -- down from 0.7 percent in the previous quarter -- and by 2.7 percent annually.
The GDP growth was largely driven by household spending increasing for the fifth consecutive quarter following the end of strict COVID-19 lockdowns, the return of international students and booming commodities exports.
However, the figure was lower than the forecast by economists -- prompting warnings of a looming economic downturn.
Compensation of employees increased by 2.1 percent, but the household saving to income ratio fell for the fifth straight quarter to its lowest level since September 2017.
"The fall was driven by increased interest payable on dwellings, income tax payable and increased spending," Katherine Keenan, ABS head of National Accounts, said in a media release.
The ABS's monthly measure of inflation fell from 8.4 percent to 7.4 percent in January -- bolstering the government's prediction that the crisis has peaked.
"This month's annual increase of 7.4 percent is lower than the 8.4-percent rise for the year to December 2022," said Michelle Marquardt, ABS Head of Prices Statistics.
"It is, however, the second highest annual increase since the start of the monthly CPI indicator series in September 2018, signifying ongoing high inflation."
Responding to the data, Treasurer Jim Chalmers said it confirms growth in the Australian economy is moderating as expected, with substantial and growing challenges in 2023.
"This is an inevitable consequence of a global economic slowdown, high inflation, rising interest rates and an international energy crisis," he said.
"We are focused on addressing inflation with responsible cost-of-living relief, repairing our broken supply chains, and demonstrating spending restraint in the Budget -- and we're building the resilience of the economy to withstand future economic shocks."
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