Great article. Need to make a minor change you are using “net disposable income” not “disposable income” as your measure of household debt. You may find that if you use the ABS measure of % household debt to GDP it will be lower.
Australia: Household debt to GDP
The most recent value is 112.1 percent as of December 2024, an increase compared to the previous value of 111.5 percent. Historically, the average for Australia from March 1999 to December 2024 is 105.34 percent. The minimum of 64.1 percent was recorded in March 1999, while the maximum of 124.4 percent was reached in September 2016.
Key information about Australia Private Debt: % of Nominal GDP
* Australia Private Debt accounted for 126.28 % of its Nominal GDP in Dec 2024, compared with a ratio of 125.31 % in the previous quarter
* Australia Private Debt contribution to Nominal GDP ratio is updated quarterly, available from Mar 1990 to Dec 2024, with an average share of 109.83 %
* The data reached an all-time high of 139.33 % in Dec 2016 and a record low of 56.65 % in Mar 1990
CEIC calculates quarterly Private Debt as % of Nominal GDP from monthly Private Debt and quarterly Nominal GDP. Private Debt is calculated as the sum of Lending to Personal and Non Financial Sector. The Reserve Bank of Australia provides Private Debt in local currency. The Australian Bureau of Statistics provides Nominal GDP in local currency. Private Debt prior to Q2 2003 excludes Financial Businesses.
Thank you, Wayne. I added the word “net”. The numbers are always in flux and under revision as you know and it often depends on the source too. Later, I explicitly mention household debt to income, so as not to confuse it with private debt to income
I am not sure but I think if you use % of Household Debt to GDP you find Australia isn’t up so high in the international rankings. I like your metric of using % of Household Debt to Net Disposable Income better, because I think it’s much more accurate of how people are coping.
I will not always get it correct, but yes showing the people’s side of the ledger is the important part. As John Haly suggests, ABS unemployment figures are for capitalists and Roy Morgan unemployment figures are for workers, or something to that effect.
Great article. Need to make a minor change you are using “net disposable income” not “disposable income” as your measure of household debt. You may find that if you use the ABS measure of % household debt to GDP it will be lower.
Australia: Household debt to GDP
The most recent value is 112.1 percent as of December 2024, an increase compared to the previous value of 111.5 percent. Historically, the average for Australia from March 1999 to December 2024 is 105.34 percent. The minimum of 64.1 percent was recorded in March 1999, while the maximum of 124.4 percent was reached in September 2016.
Source: The Bank for International Settlements
https://tradingeconomics.com/australia/households-debt-to-gdp
Around 88.7% of private debt is household debt.
Key information about Australia Private Debt: % of Nominal GDP
* Australia Private Debt accounted for 126.28 % of its Nominal GDP in Dec 2024, compared with a ratio of 125.31 % in the previous quarter
* Australia Private Debt contribution to Nominal GDP ratio is updated quarterly, available from Mar 1990 to Dec 2024, with an average share of 109.83 %
* The data reached an all-time high of 139.33 % in Dec 2016 and a record low of 56.65 % in Mar 1990
CEIC calculates quarterly Private Debt as % of Nominal GDP from monthly Private Debt and quarterly Nominal GDP. Private Debt is calculated as the sum of Lending to Personal and Non Financial Sector. The Reserve Bank of Australia provides Private Debt in local currency. The Australian Bureau of Statistics provides Nominal GDP in local currency. Private Debt prior to Q2 2003 excludes Financial Businesses.
See https://www.ceicdata.com/en/indicator/australia/private-debt--of-nominal-gdp
https://rmbl.com.au/blog/the-rise-of-private-debt-in-australia/
https://www.alvarezandmarsal.com/sites/default/files/2024-12/Australian%20Private%20Debt%20Market%20Review%202024_0.pdf
Thank you, Wayne. I added the word “net”. The numbers are always in flux and under revision as you know and it often depends on the source too. Later, I explicitly mention household debt to income, so as not to confuse it with private debt to income
I am not sure but I think if you use % of Household Debt to GDP you find Australia isn’t up so high in the international rankings. I like your metric of using % of Household Debt to Net Disposable Income better, because I think it’s much more accurate of how people are coping.
I will not always get it correct, but yes showing the people’s side of the ledger is the important part. As John Haly suggests, ABS unemployment figures are for capitalists and Roy Morgan unemployment figures are for workers, or something to that effect.