Australian Treasurer confirms recession as bushfires, pandemic gobble down growth

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Australian Treasurer confirms recession as bushfires, pandemic gobble down growth

Earlier on Wednesday, Australia’s Treasury Department had issued a statement saying that the Chinese export-oriented economy had fallen in to a recession for the first time since early 1990s, as the Treasury Department data had revealed the country’s overall GDP (Gross Domestic Product) had witnessed a cataclysmic downward spiral over the first quarter of the year since most of the businesses were closed down in a bid to contain the global-scale pandemic outbreak.

Aside from that, according to the Australian Bureau of Statistics data revealed on the day’s Asia-Pacific trading hours, the $1.39 trillion or A$2 trillion economy of Australia had shrunk by 0.3 per cent over the first quarter of the year that ended of March 31st, eventually downsizing the annual growth to 1.4 per cent, the slowest level ever seen since the Great Financial Depression of 2007-2009.

Besides, followed by the reveal of the day’s Australian Bureau of Statistics data, several analysts were quoted saying that the contraction was almost entirely prompted by the worst bushfire in generations that set off on July last year and had burned down the southern part of the country, leading to a loss of tens of thousands of jobs and making millions homeless.

Concomitantly, analysts had also added that a prolonged drought alongside a pandemic outbreak that led to a virtual shut-down of the entire economy had also spurred up the contraction adding the second quarter of the year would likely to bear the heaviest brunt.

Australian Treasury’s Josh Frydenberg says economy is in recession

Meanwhile, followed by the release of the day’s Australian GDP data, adding that the two straight quarters of GDP contraction had pushed the Australian economy into a technical recession, Aussie Treasurer Josh Frydenberg said to the reporters in Canberra earlier in the day, “Based on what we know from Treasury, we’re going to see a contraction in the June quarter, which is going to be a lot more substantial than what we have seen in the March quarter.