GDP per capita shrank in the third quarter and on some forecasts it will shrink again in the fourth quarter — which technically would be a recession of sorts.

The maths is pretty simple.

Australia’s population grows at around 0.4 per cent a quarter (1.6 per cent a year). Quarterly GDP growth of 0.4 per cent delivers no growth on a per capita basis.

Population growth may be terrific for the headline aggregate number, but on an individual household level its impact is diluted by, well, the impact of more people.

The consensus call from market economists is for 0.4 per cent growth in the fourth quarter, although many say it could be worse — or “the risks are on the downside”, as they say — after a spate of soft economic data in recent weeks.

via Households’ living standards are still falling as GDP per capita heads for a recession – Analysis & Opinion – ABC News (Australian Broadcasting Corporation)