Australia confirms first recession in 30 years

DY365
DY365
Published: September 2,2020 12:22 PM
DY365

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September 2, 2020: Australia's economy has plunged into its first recession in nearly 30 years, as it suffers the economic fallout from the coronavirus.

September 2, 2020: Australia's economy has plunged into its first recession in nearly 30 years, as it suffers the economic fallout from the coronavirus.



Gross domestic product (GDP) shrank 7% in the April-to-June quarter compared to the previous three months.



This is the biggest fall since records began back in 1959 and comes after a fall of 0.3% in the first quarter.





At the start of this year, the economy was hit by falling economic growth due to an extreme bush fire season and the early stages of the coronavirus outbreak.



More recently the shutdowns of businesses across the country have taken their toll, despite measures by the government and central bank to support the economy.



Australia’s early lifting of restrictions and reopening of its economy is now being offset by an almost two-month lockdown in Melbourne, the nation’s second-largest city with about 5 million people, delaying the recovery.





The central bank and government are working in tandem to try to support the economy, with the former on Tuesday expanding a lending facility to banks to keep credit flowing and the latter extending its labor market assistance package.



Australia was the only major economy to avoid a recession during the 2008 global financial crisis - mainly due to demand from China for its natural resources.