Aus­tralia suf­fers a rare re­ces­sion

Orlando Sentinel - - Business -

CAN­BERRA, Aus­tralia — The coronaviru­s pan­demic pushed Aus­tralia’s econ­omy into re­ces­sion for the first time in 29 years in the first quar­ter of the year, and the sit­u­a­tion is ex­pected to get worse.

Trea­surer Josh Fry­den­berg said Wed­nes­day that the cur­rent June quar­ter will be the sec­ond in a row in which the Aus­tralian econ­omy has con­tracted.

A re­ces­sion is de­fined as at least two con­sec­u­tive quar­ters of con­trac­tion. Data re­leased Wed­nes­day showed the econ­omy shrank 0.3% in the Jan­uary-March quar­ter due to de­struc­tive wild­fires and the early stages of Aus­tralia’s coronaviru­s lock­down.

Weak house­hold con­sump­tion was a key fac­tor be­hind the de­cline, as mil­lions have lost jobs.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.