Households have suffered their worst loss of wealth in almost 50 years, according to Analysing Treasury data.
The economy is deteriorating at a faster pace than in the previous recession, and consumers are feeling the pinch with wealth held in property, shares and other assets falling nearly 12 percent in the past year.
The data shows the average Australian’s wealth is just under $224,000, down over $24,000 from a year ago.
CommSec economist Savanth Sebastian believes that the sharp decline in wealth has “had an adverse impact on consumer sentiment and in turn spending levels have languished.”
However, he believes that the recent improvement in house prices, coupled with the pick-up in the share market over March will help to “support wealth” over the coming year.
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