Only a $6 billion increase in government spending on everything from childcare subsidies to railway lines is likely to have kept the economy afloat over the past 12 months as households struggle to deal with cost-of-living pressures.
Despite concerns about the inflationary impact of government expenditure, figures to be released by the Australian Bureau of Statistics on Wednesday are tipped to show spending by federal, state and local governments offsetting weakness in the private sector and among the nation’s consumers.
Sydney’s $21.6 billion Metro extension is among the state government infrastructure works supporting the economy.Credit: Louie Douvis
Economists expect the national accounts to show the economy expanded by about 0.3 per cent through the June quarter, taking annual growth below 1 per cent since the middle of 2023.
Partial data released on Tuesday revealed the importance of public spending, …