Australia suffers a rare recession
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.