on air now

Treasurer confident ‘momentum’ in the economy will continue following strong growth figures

Article image for Treasurer confident ‘momentum’ in the economy will continue following strong growth figures

Treasurer Josh Frydenberg is confident momentum in the Australian economy will continue after strong GDP figures were released today.

The Australian economy is growing at its fastest rate in six years, expanding 0.9 per cent in the three months to June.

A rise in household consumption is behind the positive figures.

Treasurer Josh Frydenberg tells Ross Greenwood “all Australians should be delighted” by the growth figures and the good news will continue into the future despite sluggish wages growth.

“I do believe that we can continue the momentum, that this reflects the fundamentals of the Australian economy.

“What was so important with these numbers was the growth was broadly based. We saw increases in household consumption, we saw increases in dwelling investment.”

The Federal Treasurer concedes there is more work that needs to be done when it comes to boosting real wages growth, but it will come.

“I recognise real wages growth has been slow,” he says.

“The Reserve Bank put out a statement yesterday… (and) they pointed to the fact unemployment will continue to come down, that they are starting to see a tighter labour market in some sectors of the economy and as more employment comes on board then it will eat into the spare capacity in the market.

“That’s when we’ll start to see real wages grow. And that is something the government is working toward.”

Click PLAY below for the full interview

Mr Frydenberg is also keen to put the leadership chaos of past weeks behind him, saying the party will not “seek to repeat” them.

“We have drawn a line under that and our focus is on delivering for the Australian people.”