Australia’s economy has plunged into its first recession in nearly a decade, as it suffers from the coronavirus.
Gross domestic product (GDP) fell 7% in the April-June quarter compared to the previous three months.
This is the largest decline since records began in 1959 and a 0.3% decline in the following quarter.
An economy is considered to be in recession if two consecutive quarters of negative growth are observed.
Australia was the only major economy to survive the recession during the 2008 global financial crisis – mainly due to China’s demand for its natural resources.
Earlier this year, the economy suffered a slowdown in economic growth due to the extreme tree season and the early stages of the coronavirus outbreak.
Despite measures taken by the government and the central bank to support the economy, they have recently gained momentum following the closure of industries across the country.
This is the worst economic growth in 61 years due to a sharp contraction in household spending on goods and services.
2020 will go down as a year to remember and a year everyone is trying to forget! It was the year that Australia technically lost its popular nickname ‘The Lucky Country’ and fell into recession for the first time in almost three decades.
Statistics from the Australian Bureau of Statistics show that the economy has shrunk by 1% in the last three months as a result of the coronavirus epidemic.
For young people who have recently joined the working group, this is something they have never experienced before. Coal Australia has seen steady economic growth for decades, with strong coal, iron ore and growing natural gas exports to China. Tourism has also been a major driver of growth.
But this year, the country was hit hard. twice. When bushfires devastated an area of more than 12 million hectares, tourism began and thousands of small businesses lost a month’s essential seasonal income. Then the coronavirus became a global epidemic. Australia Australia closed its borders and imposed strict social distance rules.
As a result, about 1 million people lost their jobs. I remember seeing long queues outside the social and economic support offices in March, people were probably amazed to find themselves in this situation for the first time in their lives.
China also has an increasingly strained relationship with China, Australia’s largest trading partner. April Australia strongly and publicly endorsed a global investigation into the origin of the coronavirus in April, angering the Chinese government. Since then, there have been political squabbles between Canberra and Beijing and the Australian Australian economy has felt the pinch.
Scott Morrison’s government has already raised more than bn 200bn (£ 110bn; US $ 147bn) in economic stimulus. Australia has done better than many other countries in the world in controlling the virus and the subsequent economic downturn, but this country of abundance will have to face a much tougher reality for the next few years.
Australia Australia last fell into recession in the mid-1990s and lasted until the late 1991.
But the coronavirus epidemic has dealt a major blow to the Australian economy, although the figure is slightly better than the fall in the Australian Reserve Bank’s earlier forecast.
Despite a sharp drop in economic activity, Australia is performing better than other advanced economies that have experienced the most recessions.
The U.S. economy, the world’s largest, shrank by 1% between April and June, while the UK’s contraction pushed it into recession by 30.4%.
France’s economy is down 13.8% and Japan’s is down 7.6%.
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