Australia is in its first recession in 29 years as Federal treasurer Josh Frydenberg confirms fall in economic growth.
Australia faced 2020 with bushfires that ravaged the country and the COVID19 virus which locked down the entire nation, the combination causing devastating consequences for the economy.
Gross Domestic Produce (GDP) figures from the Bureau of Statistics show Australia’s economy shrank 0.3 per cent in the March quarter. It is certain the countries economic state will be far worse in the current June quarter, which will reveal the full impact of the virus-related shutdowns on the countries economy.
Federal Treasurer, Josh Frydenberg is adamant on confirming the country is in a recession even without the June quarter figures. A recession in generally defined as two consecutive quarters of economic contraction.
“Well, the answer to that is yes,” he told reporters in Canberra on Wednesday.
“And that is on the basis of the advice that I have from the Treasury Department about where the June quarter is expected to be.”
Mr Frydenberg has delayed his detailed budget update to July, when changes to the JobKeeper wage subsidy will also be announced.
Australia experienced its last recession 29 years ago, which started in the September quarter of 1990 and ended in the September quarter of 1991, during which the GDP plummeted by 1.7 percent and the unemployment rate rose to 10.8 percent.
“We have never seen an economic shock of this speed, magnitude and shape,” Steven Kennedy, Treasury Secretary
Chief Economist for the ABS, Bruce Hockman, said: “This was the slowest through-the-year growth since September 2009 when Australia was in the midst of the Global Financial Crisis and captures just the beginning of the expected economic effects of COVID-19.”
The current unemployment rate in Australia is 6.2 percent rising up from 5.2 percent in March which is approximately 823,300 People.