Australia’s economy in recession

Treasurer Josh Frydenberg has confirmed Australia is now in a recession as the economy reels from the coronavirus pandemic.

Mr Frydenberg’s confirmation came after the the Australian Bureau of Statistics (ABS) showed the A$2 trillion ($1.39 trillion) economy contracted 0.3% in the quarter ended March, the first decline in nine years.

That took the annual growth to 1.4%, the slowest since the 2009 global financial crisis, as the economy was hit by the worst bushfire season in living memory, a prolonged drought and a pandemic that shut down businesses and left many without jobs.

Asked whether the country was now in recession, he said: “Well, 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.”

Via Reuters