Categories: Business

Australia in recession for 1st time in nearly 30 years | Covid-19 Effect: 30 years after Australia's recession, GDP falls by 7 percent

Photo: FRANCE 24

Australia in recession for 1st time in nearly 30 years

Canberra. Australia has officially recorded the first recession after nearly 30 years. Here in the June quarter, GDP has fallen by 7 percent from the previous quarter. This information has been provided by the official figures revealed on Wednesday.

According to a report by the news agency Xinhua, according to new figures from the Australian Bureau of Statistics (ABS), the GDP for the June quarter was 0.3 percent lower than the March quarter of this year. The record decline came from the private sector, which was either closed or banned as part of efforts to curb the Kovid-19 epidemic.

Michael Smids, head of national accounts at ABS, attributed the decline to the global epidemic and its prevention policies. He said that this is a big margin. This is the biggest drop in quarterly GDP since 1959.

The ABS report also showed that due to additional support payments, the social assistance benefit in cash amount increased to 41.6 percent. Spending on services reduced 17.6 percent due to a decrease in transportation services, vehicles and the operation of hotels, cafes and restaurants.

Smids further noted that the June quarter also saw a significant reduction in household spending on services as families changed their attitudes about it and imposed restrictions on many such services to prevent the spread of the corona virus.

A report by the Australian Broadcasting Corporation said that the impact of the Kovid-19 recession was felt differently across states. The report quoted Sarah Hunter of BIS Oxford Economics as saying that New South Wales and Victoria saw the sharpest declines, with state finals demand falling by 8.6 per cent and 8.5 per cent, respectively. Tasmania was also at a disadvantage due to non-arrival of international tourists.

This post was published on September 2, 2020 11:34 am

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