QIC's Peter Sees Australian Housing Market Retrace

Matthew Peter, a top-rated economist, discusses Australia's economic outlook amid low wage growth, high household debt, and fluctuating house prices. He highlights the challenges faced by the RBA and the impact of government investment and consumer spending on GDP growth. Despite a slight Q2 growth, unsustainable factors like temporary government expenditure and retail discounting pose risks to sustained economic growth.

What is the main reason for the disparity between business and consumer confidence in Australia?

• Increased government spending

• Low wage growth and high household debt

• High business taxes

• Rising unemployment rates

How are recent changes in house prices affecting consumers?

• Consumers are seeing increased wealth from rising house prices

• Consumers are facing challenges due to high debt and falling house prices

• Consumers are unaffected by house price changes

• Consumers are benefiting from lower prices

What is one of the unsustainable factors contributing to the recent GDP growth in Australia?

• Rebound in government investment expenditure

• Increased exports to China

• Rising consumer confidence

• Decreasing unemployment rates

What is a potential challenge for sustaining above-trend growth in Australia?

• Tightening of the federal budget

• Increasing global demand

• Rising consumer spending

• Stable housing market

Which sector is facing serious headwinds due to budget tightening and a falling housing market?

• Technology sector

• Export sector

• Domestic demand

• Agricultural sector