|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Business & Economy (Click here for more)

Australia on Track for 1st Recession in 29 Years as GDP Contracts

SYDNEY – Australia is on its way to its first recession in 29 years after registering a drop in its gross domestic product (GDP) of 0.3% in the first quarter of the year, according to official data published on Wednesday.

In its first decline in nine years, the Australian economy contracted from January to March by 0.3%, according to data released Wednesday by the Australian Bureau of Statistics (ABS).

This placed annual growth at 1.4%, the lowest since September 2009, when Australia weathered the blow of the global financial crisis.

“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,” ABS chief economist Bruce Hockman said in a statement.

The decline is mainly linked to the 1.1% drop in domestic spending, especially on services, due to restrictions on businesses such as hotels and tourism, as well as air transport.

After the outbreak of the novel coronavirus epidemic, the Australian government imposed a series of restrictions and ordered the closure of businesses to stop the spread of the virus while implementing economic aid and stimulus packages equivalent to 13.3% of its GDP.

Although it takes two consecutive negative quarters to be considered a recession, Australia is expected to have a deeper contraction in the next quarter as a result of the epidemic, Treasurer Josh Frydenberg said Wednesday at a press conference.

When asked if Australia is currently in recession, Frydenberg said “the answer to that is yes. 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.”

The Reserve Bank of Australia estimates that GDP will drop 6% during 2020 and the unemployment rate may reach 10%.

Before the epidemic, the country had registered almost 30 years of consecutive economic growth.

With at least 7,220 confirmed coronavirus cases, including 102 deaths, Australia has started to resume its economic activities with the aim of full normalization by July.

 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2020 © All rights reserved