The annualised growth in  real gross domestic expenditure nevertheless remained at 4½ per cent in the second half of 2002 and in the first half of 2003. Growth in real household consumption expenditure slowed only slightly from an annualised rate of 3 per cent in the second half of 2002 to 2½ per cent in the first half of 2003.
The sustained high growth in consumption expenditure was made possible by relatively strong increases in personal disposable income as well as by a rise in household debt. Household disposable income benefited from higher salaries and wages, improved social transfers from government and income tax reductions.