The SMH argues that although Australia now has not had a recession for nearly 26 years, without more rapid wages growth, the record-breaking run may not last.
Economic growth has slowed to its slowest pace since 2009. Growth of 0.3 per cent in the March quarter took the annual rate of growth to 1.7 per cent, data from the Australian Bureau of Statistics showed, and Australia has now gone 103 quarters, or more than 25 years, without a recession.
The treasurer says the numbers demonstrate the resilience of the Australian economy.
The SMH, however, points out that we shouldnt kid ourselves growth is now permanent, arguing low wages growth is a continuing problem.
The Fair Work Commission has announced a 3.3 per cent increase in the minimum wage which will come into effect on July 1.
The paper says if it turns out to be the start of more rapid wages growth, the record-breaking run may yet have legs. It, however, expresses concern that if the downturn deepens, we can hardly expect a Turnbull government to reach for a Rudd-era cash-splash rescue.
