Australia’s economy dove into its first downturn in in quite a while in the second quarter as the Covid-19 pandemic shut down many firms and constrained thousands into jobless, with the viewpoint staying dim as the key province of Victoria battles a resurgence of the Covid virus.
The negative growth follows down by a 0.3% in the March quarter, with the latest considers bringing with account the full effect of the first wave of covid19 shutdowns on the economy. This denotes the first run through the Australian economy has encountered continuous quarters of GDP contraction since 1991 and snaps an unmatched time of flourishing for the resource-rich economy.
What are the key numbers?
The key figure is the general GDP growth, which initially slipped into negative territory for the principal quarter period, among January and March this year.
Private interest degraded 7.9 rate points from GDP in the subsequent quarter, driven by a 12.1% down in household spending, the ABS said. Spending on administrations fell 17.6%, with declines in transportation services, operation of vehicles and hotels, cafes, Bars & restaurants.
The recession in the Australian economy has been moderated by the deployment of a record financial boost concentrated on keeping firms in operation and retaining laborers on payrolls, while the Reserve Bank of Australia has cut off the Loan interest rates to almost zero and assumed measures to support liquidity for banks.
Treasurer Josh Frydenberg will divulge the government’s budget for 2020-21 next month, where he is expected to announce big one measures to help the economy as it battles to assemble force over the coming quarters.
How is Australia faring recession compared to other countries?
Even Though its negative growth, Australia is really faring relatively well compared to other countries and particularly compared to other developed nations.
In UK, which went through a severe lockdown in the June quarter, financial GDP fell by 20.4 percent, pushing the country into one of the deepest recessions of any major worldwide economy.
Gross domestic product fell by a little more than 9 percent in the United States, while Germany and Canada additionally recorded comparable constrictions.
