The ALP government. What was their record like?

There are some people saying the previous government was the worst in Federation.
Naturally people who make this accusation never put up any evidence to back up their statement so let us look at their record.

GDP Growth
GDP growth was 2.6% which was clearly below trend. Moreover Nominal GDP has been clearly below trend for some time. This is mainly because of the fall in the terms of trade. Contractionary fiscal policy did not help here either.

Fiscal

The government ended up with a budget deficit of 1.2% of GDP. Outlays were 24.3% and Receipts were 23.2% of GDP.
Clearly  the below trend growth rates of Nominal GDP have had a huge impact.This is the main reason why the budget is still in the red and it is no bad thing.

Labour market

Unemployment is 5.7% and labour costs are rising at 2.7%. Clearly we see no sign of a rigid labour market here. Wages are now rising at a lower rate than when the GFC hit us.

Inflation

the RBA preferred measure is at 2.3%.


Thus looking at these various measures of the economy any person who claims the previous Government was the worst Government in Federation is either a moron, an imbecile or simply stark raving mad!