Australia tumbled into its first recession for almost three decades with its pandemic-crippled economy shrinking a record 7 percent in the second quarter, official data shows.
With vast swathes of the domestic and global economy shut down to contain the deadly disease, business activity suffered a catastrophic drop — despite authorities providing billions of dollars in support — not even witnessed during the global financial crisis.
Today’s national accounts confirm the devastating impact on the Australian economy from COVID-19, said Treasurer Josh Frydenberg.
Our record run of 28 consecutive years of economic growth has now officially come to an end. The cause: a once-in-a-century pandemic, he said.
The economy contracted 7 percent in April-June from the previous three months, in line with government forecasts, the Australian Bureau of Statistics said. That followed a 0.3 percent dip. A recession is defined as two consecutive quarters of contraction.