Annual Macroeconomic Snapshot • 1970s • 1974 wage explosion & stagflation peak
The Australian Economy in 1974
In 1974, Australia’s Estimated Resident Population stood at 13,831,978, real GDP growth averaged 1.6%, annual CPI inflation averaged 15.2% and the unemployment rate averaged 2.4%.
- • The 10-year Commonwealth Government bond yield averaged 9.04% in 1974 (prior to the modern RBA Cash Rate Target series).
- • The Australian Dollar averaged US$1.4354 against the US Dollar during 1974.
- • Key macroeconomic milestone: 1974 wage explosion & stagflation peak.
1974 Economic Indicators at a Glance
% p.a.
Rank #3 of 104 yrs
Inflation (CPI) in 1974
15.2% Long-run avg: 4.0%
+6.0 pp %
Rank #55 of 77 yrs
Unemployment Rate in 1974
2.4% Long-run avg: 4.8%
+0.6 pp % p.a.
Rank #68 of 77 yrs
Real GDP Growth in 1974
1.6% Long-run avg: 3.4%
-3.4 pp Persons
Rank #53 of 126 yrs
Population in 1974
13.83M Long-run avg: 12,689,752
+217,634 % p.a.
Rank #54 of 125 yrs
Population Growth in 1974
1.60% Long-run avg: 1.61%
+0.07 pp % p.a.
Rank #20 of 78 yrs
10-Year Bond Yield in 1974
9.04% Long-run avg: 6.63%
+2.11 pp % p.a.
RBA Cash Rate in 1974
N/A Series commenced later
US$ per A$1
Rank #1 of 67 yrs
AUD/USD Exchange Rate in 1974
US$1.4354 Long-run avg: US$0.8921
+0.0152 % of disposable income
Rank #3 of 68 yrs
Household Saving Ratio in 1974
18.1% Long-run avg: 9.0%
-0.2 pp % of GDP
Rank #50 of 68 yrs
Trade Balance (% GDP) in 1974
-1.6% Long-run avg: -0.5%
-3.8 pp '000 dwellings / month
Rank #51 of 62 yrs
Dwelling Approvals in 1974
122.0k Long-run avg: 152.7
-61.5 % p.a.
Wage Growth (WPI) in 1974
N/A Series commenced later
1974 in Context: Preceding & Following Years (1969–1979)
10-year window around 1974 showing how key indicators evolved before and after