One thing at the top of most us these minds right now, it's how to survive the Christmas period with no financial relief in sight. And in just a few hours, new GDP figures are set to reveal what's ahead for the Australian economy in twenty twenty five. Data from the September quarter is expected to show historically slow growth as more households struggle to manage high inflation and high interest rates. To break things down, I'm joined by behavioral economist Evan Lucas, who's in Melbourne Live. Good morning to you GDP. We hear lots of these stats and figures. What on earth is GDP and why should we care about it if we're sitting in our lounge rooms this morning?

One thing at the top of most us these minds right now, it's how to survive the Christmas period with no financial relief in sight. And in just a few hours, new GDP figures are set to reveal what's ahead for the Australian economy in twenty twenty five. Data from the September quarter is expected to show historically slow growth as more households struggle to manage high inflation and high interest rates. To break things down, I'm joined by behavioral economist Evan Lucas, who's in Melbourne Live. Good morning to you GDP. We hear lots of these stats and figures. What on earth is GDP and why should we care about it if we're sitting in our lounge rooms this morning?

Yeah, good question, because it is one of those things that you've probably got taught in U ten economics that most people switch off about because it is just an equation, And to put it simply, it is the cost of our consumption, the cost of private investment, the cost of public spendings of the government, and then what we refer to as net export, so the stuff that we export minus the stuff that we import. That is the equation that is GDP. The thing that matters for the household is the first part consumption. It makes up about fifty five percent of that equation. And this quarter, when we talk about the GDPT is today, it happened sixty five days ago. We are talking about what happened to the end of September. And it's going to be interesting because in that quarter we got energy rebates, the Stage three tax cuts started to come through, and there was some sign that the household was seeing a little bit less pressure. I'm certainly not trying to sugarcoat it for you in that, but a little bit less pressure in inflation. And it could be the first time in five quarters that the household actually gets out of reverted commas per capita recession. Not counting on it, but it's possible.

Yeah, good question, because it is one of those things that you've probably got taught in U ten economics that most people switch off about because it is just an equation, And to put it simply, it is the cost of our consumption, the cost of private investment, the cost of public spendings of the government, and then what we refer to as net export, so the stuff that we export minus the stuff that we import. That is the equation that is GDP. The thing that matters for the household is the first part consumption. It makes up about fifty five percent of that equation. And this quarter, when we talk about the GDPT is today, it happened sixty five days ago. We are talking about what happened to the end of September. And it's going to be interesting because in that quarter we got energy rebates, the Stage three tax cuts started to come through, and there was some sign that the household was seeing a little bit less pressure. I'm certainly not trying to sugarcoat it for you in that, but a little bit less pressure in inflation. And it could be the first time in five quarters that the household actually gets out of reverted commas per capita recession. Not counting on it, but it's possible.

So do we want the GDP figures to be higher or lower? What number are we looking at when they come out today?

So do we want the GDP figures to be higher or lower? What number are we looking at when they come out today?

We need it to be higher and it will be. So we are looking for a year on year figures, so the growth in the economy to be about one percent. So that's the expectation. A lot of that we already know from the government. Yesterday they came out with their data for their input. Today it grew by point eight which is the largest growth in government spending since April twenty twenty two. That will be a huge part of this, and the government has been a major reason we haven't fallen into recession because they are spending and spending big. It is a helpful thing, but it's the household that we want to see. So expectation is for a one percent growth figure, mainly driven by government. Can the household come through.

We need it to be higher and it will be. So we are looking for a year on year figures, so the growth in the economy to be about one percent. So that's the expectation. A lot of that we already know from the government. Yesterday they came out with their data for their input. Today it grew by point eight which is the largest growth in government spending since April twenty twenty two. That will be a huge part of this, and the government has been a major reason we haven't fallen into recession because they are spending and spending big. It is a helpful thing, but it's the household that we want to see. So expectation is for a one percent growth figure, mainly driven by government. Can the household come through.

Okay, okay, just quickly. Will the RBA look at that and increase and reduce interest rates so that rb.

Okay, okay, just quickly. Will the RBA look at that and increase and reduce interest rates so that rb.

Will look at that and go we're still going okay, low growth, but okay, not enough to cut rates.

Will look at that and go we're still going okay, low growth, but okay, not enough to cut rates.

Okay, we'll talk to you soon. Thanks Evan,

Okay, we'll talk to you soon. Thanks Evan,