Covid plunges Australia into recession for the first time in 30 years as a pandemic paralyzes its operations
Australia is in recession for the first time in nearly 30 years after the coronavirus has slowed business operations.
Data from the Australian Bureau of Statistics shows that the country’s economy contracted by 7 percent in the three months to the end of June and contracted by 0.3 percent in the first quarter of the year.
It was the largest quarterly decline in GDP since recording began in 1959, signaling Australia’s first recession since 1991.
Data from the Australian Bureau of Statistics showed that the country’s economy contracted by 7 percent in the three months to the end of June and had contracted by 0.3 percent in the first quarter.
A large number of countries – including the UK, the US and Germany – have also gone into recession in the wake of the Covid-19 outbreak.
“This crisis is like no other,” said treasurer and deputy leader of Australia’s Liberal Party, Josh Frydenberg.
“Our record run of 28 consecutive years of economic growth has now officially ended.”
Australia was the only major economy to avoid recession during the global financial crisis of 2008, mainly due to China’s demand for its natural resources.
But Frydenberg told Australians that “we have your back.”
The politician said, “We will be with you through this crisis and all the way out of this crisis.”
More than a million people have lost their jobs since March when Australia shut down entire sectors of the economy, hitting private sector demand and investment.
The government did more than A $ 300 billion in stimulus measures, although the dismal data underlines the need for more stimulus measures.
“It will take a long time to get back from the Covid-19 recession,” said Sarah Hunter, chief economist at BIS Oxford Economics. ‘We expect it to take until early 2022 for activity to return to pre-pandemic levels.’