Australia suffers first recession in 29 years due to Covid-19
4 years, 7 months ago

Australia suffers first recession in 29 years due to Covid-19

CNN  

Sydney/Hong Kong CNN Business — Australia’s economy is suffering its first recession in nearly three decades as the nation grapples with the impact of the coronavirus pandemic. The country’s economy shrank 0.3% in the first three months of the year from the previous quarter, according to the Australia Bureau of Statistics. Despite the recession, Frydenberg said Australia has “avoided the economy fate, and the health fate” of other countries because of actions it has taken, including economic stimulus efforts. Australia’s GDP is likely to “plummet” by 9% in the second quarter, according to Ben Udy, an economist for Australia & New Zealand at Capital Economics.

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History of this topic

Australian dollar now at risk of plummeting to pandemic-era lows, analysts say
1 week, 1 day ago

Australian dollar now at risk of plummeting to pandemic-era lows, analysts say

ABC  

The Australian dollar has fallen sharply, hitting a multi-year low of 61.88 US cents — a level not seen since October, 2022. "The problem with the Australian dollar appears to be that there was a real wobble in the Chinese currency into New Year's Eve," InTouch Capital Markets senior FX analyst Sean Callow said. The US dollar has performed strongly …

Australia's unemployment rate falls to 3.9pc in November, its lowest level since March
4 weeks ago

Australia's unemployment rate falls to 3.9pc in November, its lowest level since March

ABC  

Australia's unemployment rate fell to 3.9 per cent in November, down from 4.1 per cent in October. "The only downside to Australia's remarkably strong job market is that any hope of a near-term interest rate cut is over," said Callam Pickering, APAC economist at global job site Indeed. "Today's blockbuster November employment report seemingly pushes back — yet again — …

Major blow for Albo with Aussie economy growing at slowest pace in more than three decades
4 months ago

Major blow for Albo with Aussie economy growing at slowest pace in more than three decades

Daily Mail  

Australia's economy is now growing at the slowest pace since the early 1990s recession, outside of a pandemic. 'Today's national accounts data show the economy is still on life support, with growth over the past year slipping to its slowest pace since the early 1990s, outside of the pandemic,' he said. Australia is Prime Minister Anthony Albanese's Labor government is …

Australia’s economy posts worst performance since 1992, excluding pandemic
4 months ago

Australia’s economy posts worst performance since 1992, excluding pandemic

Al Jazeera  

Australia’s economy has posted its worst performance in more than 30 years, excluding the first year of the COVID-19 pandemic. Australia’s gross domestic product expanded by just 0.2 percent in the April-June period and 1 percent over the last year, the Australian Bureau of Statistics said on Wednesday. Australia’s post-COVID recovery is struggling after the central bank raised interest rates …

The good news is the Australian economy is about to turn up. Here's why
6 months, 2 weeks ago

The good news is the Australian economy is about to turn up. Here's why

ABC  

Right now things feel awful. Inflation was going to be 3.9 per cent, not the present 3.6 per cent and headed down, and the Reserve Bank's cash rate was going to climb two times in the second half of 2023 from 4.1 per cent to 4.5 per cent. Back in mid-2023, when asked about the probability of a recession in …

Australia's economy grew by 0.1 per cent in March quarter, with country 'teetering' on edge of recession
7 months ago

Australia's economy grew by 0.1 per cent in March quarter, with country 'teetering' on edge of recession

ABC  

Australia's economy grew by 0.1 per cent over the first three months of 2024 and 1.1 per cent over the year, according to the Australian Bureau of Statistics national accounts. "For the fifth consecutive quarter, economic activity declined on a per capita basis and the 1.3 per cent decline over the past year is the largest Australia has experienced in …

New Zealand slips into its second recession in 18 months as economy contracts
9 months, 2 weeks ago

New Zealand slips into its second recession in 18 months as economy contracts

Associated Press  

WELLINGTON, New Zealand — New Zealand has entered its second recession in 18 months after the latest round of GDP figures confirmed its economy contracted in the last quarter of 2023. The country’s economy shrank by 0.1% in the quarter to December, and 0.7% in per capita terms, the New Zealand’s official statistics agency, Stats NZ, announced on Thursday. Stats …

Prepare for debate about a looming recession. Unofficially we have been in one for some time
10 months ago

Prepare for debate about a looming recession. Unofficially we have been in one for some time

ABC  

Australians are set to find out if we are on the edge of a so-called "official" recession. In his public presentations, Richardson says he refers to real household disposable income per capita as "living standards", because that's what it measures. There's no such thing as an official recession Perhaps surprisingly, given how much we talk about "official" recessions, even the …

UK in recession after bigger-than-expected year-end contraction – ONS
10 months, 3 weeks ago

UK in recession after bigger-than-expected year-end contraction – ONS

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “Although times are still tough for many families, we …

Inflation further cools in Australia as confidence of ‘soft landing’ grows
11 months, 1 week ago

Inflation further cools in Australia as confidence of ‘soft landing’ grows

Associated Press  

SYDNEY — Inflation in Australia has slowed to its lowest rate in three years, the country’s official statistics agency said Wednesday, raising hopes of a “soft landing” for the nation’s economy. While the CPI is still above the Reserve Bank of Australia’s target band of 2-3%, the bigger than expected slowdown will raise mortgage holders’ hopes that relief on interest …

Inflation figures Australia: Major development in country's cost of living battle
11 months, 1 week ago

Inflation figures Australia: Major development in country's cost of living battle

Daily Mail  

Inflation has fallen significantly to a two-year low just months before lower and middle-income Australians are due to receive bigger tax cuts. This was the lowest headline inflation rate since December 2021, when it was at 3.5 per cent following the lockdowns in Sydney and Melbourne but before Russia's Ukraine invasion pushed petrol prices above $2 a litre. Inflation has …

Will 2024 finally be a happy new year for the Australian economy?
1 year ago

Will 2024 finally be a happy new year for the Australian economy?

ABC  

When we said "happy new year" last week, for the first time in quite a while it may actually turn out to be true, at least in an economic sense. That kind of forecast has traders on the financial markets fully pricing in a Reserve Bank rate cut by September this year, on hopes that inflation will be close to …

Australia narrowly avoided recession this year — what these experts think will happen in 2024
1 year ago

Australia narrowly avoided recession this year — what these experts think will happen in 2024

ABC  

Fears that Australia would enter a technical recession during 2023 didn't eventuate. "I think the last interest rate hike in November has led to a bit of a perhaps change in expectation that maybe we haven't seen the peak in interest rates in Australia," AMP's deputy chief economist Diana Mousina said. "I'll be the first to say that we were …

The health of China's economy could determine whether a recession is on the cards in Australia
1 year, 4 months ago

The health of China's economy could determine whether a recession is on the cards in Australia

ABC  

The Australian dollar has fallen from 68.8 US cents on June 15 to 64 US cents this week. "China's central bank allows the yuan to trade +/-2 per cent each day either side of its fixing rate," Westpac senior currency strategist Sean Callow told The Drum. Why a fall in the Australian dollar may signal good news for mortgage-holders Photo …

New Zealand is officially in a recession. These charts show how Australia compares
1 year, 6 months ago

New Zealand is officially in a recession. These charts show how Australia compares

ABC  

New Zealand is now in a recession as official data shows the economy has contracted over two consecutive quarters. "New Zealand’s economy is in the midst of a necessary, policy-induced slowdown following the strong post-pandemic recovery," the International Monetary Fund said in a statement this week. Gareth Kiernan from economic research group Infometrics wrote that he expected New Zealand's GDP …

Australia's economy grew by 0.2pc in March quarter, signalling marked slowdown in GDP
1 year, 7 months ago

Australia's economy grew by 0.2pc in March quarter, signalling marked slowdown in GDP

ABC  

Australia's economy grew 0.2 per cent in the first three months of 2023, according to the Bureau of Statistics. Key points: The economy is growing at an annual rate of 2.3 per cent, down from 2.7 per cent The household saving ratio has fallen to its lowest level in nearly 15 years Higher interest rates and the rising cost of …

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain
1 year, 10 months ago

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain

ABC  

What happens on the other side of trouble? The National Accounts, which also measure inflation with what's called the GDP "price deflator", has the cost of living rising at 9.1 per cent. AMP senior economist Diana Mousina puts the "recession probability in the next two years as high, around 40 per cent". "That's almost half the 4.7 per cent annual …

The risk of Australia entering recession has just risen
1 year, 11 months ago

The risk of Australia entering recession has just risen

ABC  

There are early signs Australia's economy is buckling under the strain of inflation and cost-of-living pressures. "As regards consumer spending specifically, a sharp curtailment due to higher interest rates and weaker house prices remains the major downside risk for the economy this year." Economists predict that despite recent drops in retail sales and house prices, the Reserve Bank will likely …

Has Australia's housing boom hit the end of the road and could it take the economy down with it?
1 year, 11 months ago

Has Australia's housing boom hit the end of the road and could it take the economy down with it?

ABC  

While Argentina may have dispatched Australia to go on and win football's World Cup, there is one kicking contest where we are undisputed world leaders – that's economic can kicking. Many fixed mortgage rates were below 2 per cent, some for terms as long as four years, and the Reserve Bank governor had said repeatedly that rates were unlikely to …

Australia's economy recovered in 2022, will it crash in 2023?
2 years ago

Australia's economy recovered in 2022, will it crash in 2023?

ABC  

Despite the odds, Australia largely withstood the global economic hurdles of 2022. "I think that's going to be the big story for next year, how much further for rates, how long do they hold and how quickly do we see the pricing dynamics and inflation ultimately being consistent with 2 to 3 per cent. "I think the unemployment rate's going …

Economic growth misses expectations as GDP increases 0.6 per cent in September quarter
2 years, 1 month ago

Economic growth misses expectations as GDP increases 0.6 per cent in September quarter

ABC  

Australia's economic growth has come in slightly below expectations, with GDP growing by 0.6 per cent in the September quarter and 5.9 per cent through the year. Key points: Australia's economic growth slowed down from a large 0.9 per cent increase in the previous quarter GDP growth came in slightly below the typical economist forecast of 0.7 per cent Household …

Deutsche Bank forecasts Australia will enter a recession in 2023, following an expected rise in unemployment
2 years, 1 month ago

Deutsche Bank forecasts Australia will enter a recession in 2023, following an expected rise in unemployment

ABC  

If investment firm Deutsche Bank's forecasts hold true, Australia will enter a recession next year. Key points: Deutsche Bank expects Australia's unemployment rate to rise by one percentage point to 4.5 per cent by the end of 2023 The RBA's unemployment forecast for the end of 2023 is much lower, at 3.7 per cent A one percentage point drop qualifies …

Australia has a problem with inflation, and that likely means more interest rate hikes to come
2 years, 2 months ago

Australia has a problem with inflation, and that likely means more interest rate hikes to come

ABC  

Australia has a problem with inflation. It's a judgement call The Reserve Bank's inflation fighting job would be a heck of a lot easier if there wasn't such a time lag between cause and effect — that is, raising interest rates and seeing prices come down. But the Reserve Bank's key objective of lowering inflation back to the target range …

Between rolling natural disasters and COVID, Australia's economy is experiencing a shift from shock to persistent problem
2 years, 2 months ago

Between rolling natural disasters and COVID, Australia's economy is experiencing a shift from shock to persistent problem

ABC  

Major flooding in suburban areas of Melbourne in the last couple of days have only reinforced the sense that we are now in a world of more or less rolling natural disasters. "The Treasury's current expectation is that a bigger and bigger part of this inflation problem over time will be what happens with power prices," Chalmers told journalists in …

Australian dollar sinks to 29-month low on 'rising risk' of global recession, ASX drops 1.4 per cent
2 years, 2 months ago

Australian dollar sinks to 29-month low on 'rising risk' of global recession, ASX drops 1.4 per cent

ABC  

Australian shares have fallen significantly, tracking heavy losses on Wall Street as worries about higher interest rates and a potential recession in the United States hurt investor sentiment. Key points: The Australian dollar peaked at 76.6 US cents in April It has since dropped 17 per cent as global recession fears mount The US Fed is tipped to lift interest …

Australia's economy grew strongly earlier this year, but at risk of a 'cliff-like slowing'
2 years, 4 months ago

Australia's economy grew strongly earlier this year, but at risk of a 'cliff-like slowing'

ABC  

Australia's economy grew strongly in the three months to June, but it was business owners who benefited more than workers. Key points: GDP grew 0.9 per cent in the quarter and 3.6 per cent through the year Increased spending on travel and hospitality drove much of the gain, along with the mining boom The share of national income going to …

Unemployment may soon dip below 3 per cent and is set to stay below 5 per cent for years to come
2 years, 4 months ago

Unemployment may soon dip below 3 per cent and is set to stay below 5 per cent for years to come

ABC  

Unfathomably, Australia's unemployment rate has sunk to 3.5 per cent. In the years before COVID, typically 3 per cent of the workforce worked less than usual hours in any given week as a result of illness or injury. In the half century we have been collecting modern employment statistics, unemployment has shot up dramatically three times: in the mid-1970s, when …

With inflation rising and talk of a possible recession, Australia's low unemployment rate may not be cause for celebration
2 years, 5 months ago

With inflation rising and talk of a possible recession, Australia's low unemployment rate may not be cause for celebration

ABC  

Have you ever had the "tap on the shoulder"? So why raise this idea when this week Australia's unemployment rate fell to 3.5 per cent — the lowest level since 1974? "We think a relatively large rise in unemployment over a short period of time is a more useful definition of recession for Australia than the 'accepted' definition of two …

Covid Shadow Hovers Over Shrinking New Zealand Economy
2 years, 6 months ago

Covid Shadow Hovers Over Shrinking New Zealand Economy

News 18  

The New Zealand economy shrank in the first quarter, performing worse than the central bank and economists had forecast as the country suffered a surge in Covid-19 infections. The New Zealand central bank, in its May monetary policy statement, predicted a modest rise while most economists had forecast a flat result. The slump in economic activity came in a quarter …

Australia's biggest economic threat isn't homegrown. It's a recession originating in the United States
2 years, 7 months ago

Australia's biggest economic threat isn't homegrown. It's a recession originating in the United States

ABC  

A recession in the US usually brings on a recession in the rest of the world, although not always in Australia. That's something our new treasurer Jim Chalmers – who many don't realise was an advisor to the treasurer during the global financial crisis – knows a good deal about. Treasurer Jim Chalmers has experienced negotiating Australia through a global …

As GDP figures are announced, Australia's economy faces two economic realities
2 years, 7 months ago

As GDP figures are announced, Australia's economy faces two economic realities

ABC  

Australia's economy is just fine, thanks. Well, the Reserve Bank's May Monetary Policy Statement said: "More broadly, the Australian economy remains resilient and is expected to grow strongly this year. In March, the Treasury stated: "Economic growth forecasts have been revised upwards, driven by stronger than expected momentum in the labour market and consumer spending." Beyond consumer spending Again, according …

Australians are spending as though they are in COVID-19 lockdowns, data from ANZ Bank suggests
3 years ago

Australians are spending as though they are in COVID-19 lockdowns, data from ANZ Bank suggests

ABC  

No state or territory around the country is in lockdown, but the economic data coming through now indicates millions of Australians are behaving as if a nation-wide lockdown is in place. Key points: ANZ data shows that spending has been at its lowest level since the Delta COVID lockdowns Caution about being out in public and staff shortages has also …

As Omicron spreads, it's bad news for the 2022 economy as COVID stirs fear — again
3 years ago

As Omicron spreads, it's bad news for the 2022 economy as COVID stirs fear — again

ABC  

When sailors wake to a red-sky morning, the adrenaline starts to build. "You know this should be boom time for Hobart, and it's much quieter than normal," Dr Jackson says. When the national mood begins to sour, it's not a bad time to announce "new" Treasury forecasts showing the economy is doing OK. Josh Frydenberg hit up the media first …

Australia's economic decline smaller than feared during latest east coast COVID lockdowns
3 years, 1 month ago

Australia's economic decline smaller than feared during latest east coast COVID lockdowns

ABC  

Australia's economy has recorded its third-biggest fall on record, as COVID lockdowns shut economic activity across the mainland's south-east. Key points: Australia's GDP fell 1.9 per cent in the September quarter, but economists had expected a 2.7 per cent slide A 4.8 per cent slump in household spending led the drop, due to lockdowns across the south-east Household saving rose …

We're not in recession now? Here's what today's GDP figures mean
3 years, 4 months ago

We're not in recession now? Here's what today's GDP figures mean

ABC  

Today's GDP figures show the economy grew by 0.7 per cent in the June quarter. Economic activity grew by 0.7 per cent in the June quarter, following growth of 1.9 per cent in the March quarter "We should remind ourselves that the Australian economy was booming for a lot of the second quarter and some of the monthly data was …

Avoiding recession won't be enough to solve Australia's economic problems
3 years, 4 months ago

Avoiding recession won't be enough to solve Australia's economic problems

ABC  

Australia is not in recession. But it probably won't make much difference if the technical definition of a recession is reached or not — the nation has been in an economic malaise for a while. Australia's economy grew over June quarter Photo shows Pedestrians cross at Flinders Street Australia's economy has bounced back from the COVID recession, with national growth …

Australian economic growth better than expected as nation's GDP returns from COVID recession, but lockdowns bite
3 years, 4 months ago

Australian economic growth better than expected as nation's GDP returns from COVID recession, but lockdowns bite

ABC  

Australia's economy bounced back from the COVID recession, with national growth rising 9.6 per cent over the year to June. The nation's economy rose 0.7 per cent in the June quarter, according to Australian Bureau of Statistics data, compared with a 1.9 per cent increase in the first three months of the year. Impact of lockdowns will show in September …

Double-dip recession possible as COVID lockdowns ravage Australian economy
3 years, 5 months ago

Double-dip recession possible as COVID lockdowns ravage Australian economy

ABC  

Having escaped a "technical" recession for nearly three decades, Australia is at risk of two in the space of just over a year. EY chief economist Jo Masters believes so, noting it is "very likely that the economy will contract in the September quarter, with strict lockdowns across New South Wales, Victoria and now South Australia." AMP Capita's "base" forecast …

Sydney's COVID-19 outbreak may cost Australia $7 billion, Cue boss urges harder lockdown
3 years, 5 months ago

Sydney's COVID-19 outbreak may cost Australia $7 billion, Cue boss urges harder lockdown

ABC  

While many retailers are bemoaning Greater Sydney's extended lockdown, some are calling for tougher restrictions to help control the outbreak more quickly as the economic damage quickly mounts. "My estimate is that it’s costing the NSW economy, and therefore by definition the national economy, about $1 billion a week," AMP Capital's chief economist Shane Oliver said. He also said the …

Australia's economy 1.1 per cent bigger than at the start of the COVID pandemic, GDP data shows
3 years, 7 months ago

Australia's economy 1.1 per cent bigger than at the start of the COVID pandemic, GDP data shows

ABC  

Australia's economy has bounced back from the COVID recession, growing by a much-better-than-expected 1.1 per cent over the past year. Key points: GDP grew 1.8 per cent in the March quarter, above economist expectations of 1.6 per cent The Australian economy is now 0.8 per cent bigger than its previous record, prior to the bushfire crisis and pandemic Both business …

The COVID-19 pandemic helped unemployment figures, but spare capacity clouds Australia's future
3 years, 8 months ago

The COVID-19 pandemic helped unemployment figures, but spare capacity clouds Australia's future

ABC  

When it comes to jobs, Australia's recovery after the economic shock of the national, pandemic-driven lockdown has been nothing short of astonishing, at least if you check the headline numbers. In February, the unemployment rate dived to 5.8 per cent, way below the 6.3 per cent jobless rate in January, a performance that stunned pundits and professional economic soothsayers alike. …

Australia's population shrinks for the first time since WWI as COVID turns off immigration tap
3 years, 9 months ago

Australia's population shrinks for the first time since WWI as COVID turns off immigration tap

ABC  

Quzi Rashadul Hoque married his wife Fariha Nahar in Bangladesh in February 2020. "By 2030, around one-million fewer people will be calling Australia home than we would have seen otherwise," demographer at the University of Queensland's school of earth and environmental sciences Dr Elin Charles-Edwards said. "Natural increase accounted for 61.4 per cent of annual population growth, while net overseas …

Unemployment and underemployment fall as COVID recovery continues
3 years, 10 months ago

Unemployment and underemployment fall as COVID recovery continues

ABC  

Both unemployment and underemployment have continued their downward trends in further positive signs that Australia's economy is bouncing back quickly from COVID-19. Key points: Employment rose for the fourth consecutive month, leaving unemployment lower at 6.4 per cent Underemployment fell and is now below pre-pandemic levels at 8.1 per cent Victoria led the jobs recovery, and now has a smaller …

U.S. economy shrank 3.5% in 2020 but grew 4% in the last quarter
3 years, 11 months ago

U.S. economy shrank 3.5% in 2020 but grew 4% in the last quarter

LA Times  

Stuck in the grip of the COVID-19 pandemic, the U.S. economy shrank in 2020 by the largest amount in 74 years but grew at a 4% annual rate in the final three months of the year. For 2020 as a whole, a year when the coronavirus inflicted the worst economic freeze since the end of World War II, the economy …

Australia 'emerges from recession' after GDP figures show economy growing for the first time this year
4 years, 1 month ago

Australia 'emerges from recession' after GDP figures show economy growing for the first time this year

ABC  

The Reserve Bank governor is warning recovery from this year's recession is likely to be "uneven and drawn out" as Australia's gross domestic product grows for the first time in 2020. Key points: GDP rose 3.3 per cent this quarter, as COVID-19 restrictions eased across most states and territories Household consumption grew almost 8 per cent after a 12.5 per …

Some media outlets say the recession caused by COVID-19 is over, but they're wrong
4 years, 2 months ago

Some media outlets say the recession caused by COVID-19 is over, but they're wrong

ABC  

The recession hasn't ended. Because economists use a range of definitions to pinpoint a recession, and one definition says if your economy experiences two consecutive quarters of shrinking activity then it's in recession. Photo shows Paul Keating It's close to 30 years since Australia's last recession, which saw vast numbers of people lose their jobs or struggle to break into …

Australia plans massive pandemic budget, record deficit
4 years, 3 months ago

Australia plans massive pandemic budget, record deficit

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Australian government on Tuesday …

Australia's coronavirus recession might soon be over, but the economic road back to full recovery will take years
4 years, 4 months ago

Australia's coronavirus recession might soon be over, but the economic road back to full recovery will take years

ABC  

And now for the good news. The long road to jobs recovery The last official recession we endured, back in 1991, appears as a tiny aberration in the economic growth story. But he's also stuck to his guns on the traditional supply-side measures, repeatedly hinting the October 6 budget may bring forward $158 billion in personal income tax cuts. Last …

Six graphs that explain Australia's recession
4 years, 4 months ago

Six graphs that explain Australia's recession

ABC  

Australia's recession is the deepest since the Great Depression of the early 1930s. The economy shrank an extraordinary 7 per cent in the three months to June — by far the biggest collapse since the Bureau of Statistics began compiling records in 1959. Treasurer Josh Frydenberg told a Parliament House press conference that in March his advisers were predicting a …

Australia recession: The economy had its worst quarter on record
4 years, 4 months ago

Australia recession: The economy had its worst quarter on record

CNN  

Hong Kong/Sydney CNN Business — The coronavirus pandemic has officially pushed Australia into its first recession in nearly three decades. The country’s GDP contracted 7% in the second quarter compared to the prior one, the Australian Bureau of Statistics said Wednesday. It marks the second straight quarter of declines for Australia — GDP shrank 0.3% in the first quarter — …

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