<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It might not seem like it right now, but Australia ranks among the </span><a href="https://www.9news.com.au/world/worlds-most-competitive-economies-where-australia-ranks/bd7fe181-4967-4827-b100-a5ce1472eacc" rel="" target="_blank" title="richest countries in the world."><span>richest countries in the world.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Financially speaking, Australians live in a "lucky country". Our nation is home to the 12th-largest economy, which is thriving partly because we are a global resource powerhouse.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>So why does it sometimes feel like we don't have much money?</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/wasted-carparks-one-billion-dollar-problem-grattan-institute/74a9ed96-e5be-43a7-82c5-70cc6719f7fa" rel="" target="_blank" title="In the midst of a housing crisis, Australia is spending billions on empty carparks"><strong><span>In the midst of a housing crisis, Australia is spending billions on empty carparks</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EXCLUSIVE: </span></strong><a href="https://www.9news.com.au/national/british-expat-why-she-moved-back-to-australia-after-returning-to-england/75109d3d-f00d-416b-bbd3-fdae6d0ca001" target="_blank" title="Expat Annie decided to move back to the UK. She lasted just six months"><strong><span>Expat Annie decided to move back to the UK. She lasted just six months</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to AMP's deputy chief economist Diana Mousina, crushing household debt is to blame.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians have some of the highest levels of personal debt in the world, mostly due to </span><a href="https://www.9news.com.au/home-loans" rel="" target="" title="soaring house prices and inflated mortgages."><span>soaring house prices and inflated mortgages.</span></a></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/household-debt-australia-why-we-feel-poor-despite-being-among-worlds-richest-countries/79fe0a69-9ec1-4094-b924-f02be903fc8c" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The average household debt is around 210 per cent of disposable income.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This is much higher than comparative economies such as the US, New Zealand, Canada and Japan.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The only countries with higher debts are Norway and Switzerland.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Mousina said this is because of our enormous mortgage market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rising loan repayments are squeezing Australians at a time when everything else is getting more expensive too.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Australians have a strong preference for home ownership, both for living and investment," Mousina said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"High debt levels do increase vulnerability.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/pcos-pmos-name-change-2026-australian-women-fight-for-condition-to-be-renamed/c971014b-74af-4c13-b637-4c23a65817ad" target="_blank" title="Lorna's chronically-misdiagnosed illness now has a new name"><strong><span>Lorna's chronically-misdiagnosed illness now has a new name</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Households are more exposed to rising interest rates, which lift repayment costs, and to economic downturns, where job losses can make servicing debt more difficult."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>On the bright side, our penchant for owning large, appreciating assets will only be a boon in the long run.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Stockpiles of wealth like land and property "provides a buffer" for the debt hanging over families, Mousina explained.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"On this measure, Australia looks strong, with household wealth at around 513 per cent of income," she added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>And despite the alarming statistics, Mousina said Australian household debt has actually slowed in the past few years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the consecutive rate rises and threats of a looming recession have been a blow to consumer confidence, the economist has a sunny outlook for how we can weather any future economic pain.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The biggest problem might actually be our warped perception.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Have Australians become so used to the 'good times' that we don't even remember what hard economic periods are like?" Mousina asked.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The reality is that Australia remains a high-quality economy, with strong institutions, a stable financial system and relatively moderate policy settings.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Perhaps the issue isn't just the economy itself – but how we perceive it."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EXCLUSIVE:</span></strong><span> </span><a href="https://www.9news.com.au/national/nsw-prisons-family-members-complain-of-repeated-physical-and-online-visit-cancellations/81867e3d-0117-4937-b3d5-4706b2102074" target="_blank" title="'Can't sleep, can't eat': Families say they are blocked from NSW prisons"><strong><span>'Can't sleep, can't eat': Families say they are blocked from NSW prisons</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>How does Australia rate on the global happiness scale?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>We might have a lot of personal debt, but Australians are much happier than many of our neighbours.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to the World Happiness Report, Australia is the 15th happiest country in the world – sitting ahead of countries including US, Germany, France, Singapore, Italy and Canada.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The report ranks nations based on their GDP, freedom, welfare systems, job security and perceptions of corruption.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Given Australia's healthy happiness scorecard, Mousina said it is "somewhat surprising" that the economic sentiment is so negative.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Based on these measures of living standards, Australia generally comes out relatively well – a country with strong fundamentals and solid long-term prospects."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank" title=""><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>