Australia’s economy has got smaller on a per capita basis – like it did in the GFC and 1990s recession. So, you know, not good

‘Here we see the real impact of the RBA’s decision to increase interest rates. Households are reducing savings in order to pay for essentials bills.’ Photograph: Ellen Smith/The Guardian

The Reserve Bank of Australia has got what it wanted – after increasing the cash rate by 400 basis points in order to slow the economy, we now have an economy that is growing only due to population growth and even then only due to government spending.

Three months ago I suggested “you should probably get used to hearing the phrase ‘per-capita recession’”, and well, here we are.