Copy link Copied Copy link Copied Subscribe to gift this article Gift 5 articles to anyone you choose each month when you subscribe. Already a subscriber? Login A two-speed economy has exposed a gulf between younger cash-strapped consumers and older wealthier Australians, small and large businesses, and mining-rich Western Australia and eastern states. Persistent inflation, elevated interest rates and housing pressures in the post-pandemic economy have widened the financial gap.
Wealthier consumers are spending up on travel, coffee machines and jewellery, according to chief executives and profit results posted this month by major companies. Meanwhile, people feeling the pinch are resorting to eating basic meals at home and dining out less, while also cutting back on non-essential items such as fashion and footwear. National Australia Bank chief executive Andrew Irvine said people are proving to be resilient to the current economic challenges, but “the averages don’t always tell the story”.
“My view is that in Australia there is a two-speed economy operating at present. “Western Australia, Queensland and the Northern Territory are resource-driven economies. They’re growing significantly more than the national average.
“Southeast Australia, particularly Victoria, is finding it more challenging. Those economies are much more correlated to domestic demand and discretionary spending.” He said that people “are getting by, and they’re budgeting hard”.
“There .