With property prices falling, and consumer spending (which accounts for approximately 60 percent of Australian GDP) also showing signs of weakness, Australia has technically fallen into a “per-capita recession”.
Over the past six months, we see that Westpac (WBK) – a major Australian banking firm – has significantly lagged behind the Australian S&P ASX 200 index:
Source: investing.com
It would appear that with rising interest rates in the United States, the Australian banking system as a whole has fallen out of favour.
In an article written on Westpac last year, another