Treasury Department of Australia had issued a statement earlier on Wednesday saying that the country’s highly developed market-oriented economy, the world’s 14th largest by nominal GDP (Gross Domestic Product), had suffered its steepest contraction since 1930 over the second fiscal quarter of the year, reaffirming analysts’ forecasts that the country had been facing off its first recession in 28 years.
Apart from that, Australian Govt. data released earlier on the day had also added that the country’s economy had contracted by 7 per cent in June that happened to be the economy’s largest contraction since the Govt.
had started off tracking the data back in the 1959s.
Aussies’ record run of 28 years of gain comes to an end as pandemic incenses
Apart from that, as the Australian economy had logged two straight quarters of contraction, the world’s 21st-largest economy by PPP (Purchasing Power Parity) had been drowned into a recession for the first time on record in 28 years as beforementioned, eventually joining a string of global economic majors which had also been met with similar fates amid a pandemic outbreak at large.
Besides, according to Australia’s Treasury Department, Aussie economy had witnessed its largest drag in household spending that tottered as much as 12.1 per cent and had alone accounted for 6.7 percentage points of the 7 per cent contraction, however, the Treasury Department had forecasted a “slightly negative or flat” growth over the nation’s fiscal second quarter.
Meanwhile, referring to the extent of downcast the pandemic outbreak had yielded on to the shores of the eastern-seaboard bound economy, Aussie Treasury Dept. Chief Josh Frydenberg said followed by the release of the data, “Today’s national accounts confirm the devastating impact on the Australian economy from COVID-19.
Our record run of 28 consecutive years of economic growth has now officially come to an end”.