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Economy stuck in first gear as government spending prevents downturn

The article from The Sydney Morning Herald discusses Australia's economic performance, highlighting that the economy is growing at a sluggish pace, with GDP growth at 0.2% in the September quarter, down from 0.4% in the previous quarter. Despite this slow growth, a recession has been avoided due to significant government spending, particularly in infrastructure and social services. The article notes that while household consumption remains weak, government expenditure has been a key driver in preventing a downturn. Treasurer Jim Chalmers emphasized the government's role in supporting the economy through these challenging times, although critics argue that this spending might not be sustainable in the long term. Additionally, the piece touches on the Reserve Bank of Australia's decision to maintain interest rates, reflecting a cautious approach to monetary policy amidst these economic conditions.

Read the Full Sydney Morning Herald Article at:
[ https://www.smh.com.au/politics/federal/economy-stuck-in-first-gear-as-government-spending-prevents-downturn-20241204-p5kvo8.html ]