Logo
Saturday, 04 July 2020
Logo
The News and Media Division of The Insight Partners
Wednesday, 03 Jun 2020 03:00 pm

Australia confirms end to longest boom as fires, pandemic destroy growth

Australia’s economy has fallen into recession, the country’s treasurer said on Wednesday, after data showed gross domestic product fell last quarter as entire business sectors were closed to fight the coronavirus.

newsImage
 

The A$2 trillion ($1.39 trillion) economy contracted 0.3% in the three months ended March, the Australian Bureau of Statistics said, the first decline in nine years.

That took annual growth to 1.4%, the slowest since the 2009 global financial crisis, as the economy was hit by the worst bushfire season in living memory, a prolonged drought and a pandemic that shut down businesses and left many without jobs.

When asked if the country was already in recession, technically defined as two straight quarters of GDP contraction, Treasurer Josh Frydenberg answered in the affirmative.

“Based on what we know from Treasury, we’re going to see a contraction in the June quarter, which is going to be a lot more substantial than what we have seen in the March quarter,” he told reporters in Canberra.

That would mark Australia’s first recession since the early 1990s and end one of the world’s longest growth streaks.

Household consumption was the biggest drag on growth last quarter with massive falls in spending on clothing, cars, transport, recreation, hotels, cafes and restaurants.

Net exports and government spending supported the economy in the quarter.

HUMAN TOLL

The economic fallout deepened in Australia as the number of local coronavirus cases surged from less than 100 in early March to more than 7,000 now, forcing the government to shut borders and restrict large gatherings.

Those curbs hit retailers and upended Australia’s labour market with 600,000 people losing work and the unemployment rate spiking to 6.2% in April. The central bank expects unemployment to hit 10% by June and stay elevated for much of 2021.

Gurpreet Singh lost his job at a cafe in Sydney’s west after it cut casual worker shifts. His home rental payments have now fallen five weeks into arrears.

To survive, he earns money delivering for UberEats on his pushbike and has turned to free food drives.

Read here

Tags Australia Recession Bushfire Economy Pandemic COVID-19 crisis GDP

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


Smarter Decisions with Smart News

Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.

media@smartmarketnews.com | sales@smartmarketnews.com

Contact Us
Subscribe to our newsletter
Get the latest in your inbox weekly Sign up for the fully charged newsletter
Follow Us:
© The News and Media Division of The Insight Partners 2019 | All Rights Reserved | Privacy Policy