Australia's economy was not in perfect health before the bushfires and coronavirus
4 years, 9 months ago

Australia's economy was not in perfect health before the bushfires and coronavirus

ABC  

The Reserve Bank of Australia knows part of its job is to keep confidence high. For evidence, he cited RBA governor Philip Lowe, who said in September last year that Australia's economy seemed to have reached a "gentle turning point" after a soft patch in 2018. They say household consumption — which makes up 56 per cent of the economy — has been on a downhill slide since the 2018 March quarter, when it was growing at 3 per cent. Despite last year's tax cuts, retails sales contracted over December and January, by 0.7 per cent and 0.3 per cent — the first time since mid-2017 that retail sales have dropped for two consecutive months. "Whereas exports and inventories will explain the major shocks in the March quarter given their exposure to the Chinese economy, the June quarter contraction will be dominated by Australia's and the rest of the world's exposure to the virus and the lagged effect of China's recession in the March quarter," he said.

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History of this topic

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 …

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 …

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 …

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 …

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 …

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion
4 years, 3 months ago

Federal Budget 2020 reveals Australia headed to record debt of almost $1 trillion

ABC  

Billions of dollars in fast-tracked tax cuts and younger worker wage subsidies underline the Federal Government's budget recovery pitch, as Australia's recession sends debt and deficits to record levels. Key points: Debt and deficits are set to hit record highs as coronavirus savages the economy Debt and deficits are set to hit record highs as coronavirus savages the economy Businesses …

Australians were suffering from weak wages growth long before the coronavirus pandemic
4 years, 3 months ago

Australians were suffering from weak wages growth long before the coronavirus pandemic

ABC  

Think about your income. Growth in real household disposable income has averaged 3.1 per cent since 2007, but between 2016 and 2019 it averaged just 1.4 per cent. "If the income-tax paid share was reduced to 13.7 per cent, the average of the period since 2002, $13 billion less taxes would have been paid over the past 12 months, representing …

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 …

Australian recession confirmed as COVID-19 triggers biggest economic plunge on record
4 years, 4 months ago

Australian recession confirmed as COVID-19 triggers biggest economic plunge on record

ABC  

Australia is officially in its first recession for almost three decades, with the June quarter GDP numbers showing the economy went backwards by 7 per cent — the worst fall on record and slightly worse than most economists had predicted. Key points: GDP plunged 7 per cent in the June quarter, more than three times the previous biggest fall of …

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 — …

Australia records its deadliest day of coronavirus pandemic
4 years, 4 months ago

Australia records its deadliest day of coronavirus pandemic

India Today  

Australia recorded its deadliest day of the pandemic Monday as the government urged hot spot Victoria state to announce its plans to lift a lockdown on the country's second-largest city. While the deaths were a state and national high, the tally of new infections was Victoria's lowest since 67 new cases were recorded on June 30 in the early weeks …

Australia's economy was weak before coronavirus. Could a 'job guarantee' help repair the economy?
4 years, 5 months ago

Australia's economy was weak before coronavirus. Could a 'job guarantee' help repair the economy?

ABC  

Treasurer Josh Frydenberg hates it when it's pointed out, but Australia's economy was in poor health well before COVID-19 hit our shores. "The last time we got to a 10 per cent unemployment rate was after the '91 recession and it took a decade to get it back to about 5 per cent," he said. " On Friday, the Reserve …

Stage 4 coronavirus restrictions in Melbourne could cost the economy $9 billion, Scott Morrison says
4 years, 5 months ago

Stage 4 coronavirus restrictions in Melbourne could cost the economy $9 billion, Scott Morrison says

ABC  

The newest measures in Victoria's harsh coronavirus restrictions could rip close to $10 billion out of the nation's economy in a matter of weeks, Prime Minister Scott Morrison says. Key points: The total cost of Victoria's lockdowns this quarter is estimated to be as high as $12 billion The total cost of Victoria's lockdowns this quarter is estimated to be …

Federal Government deficit hits record high of $86 billion as coronavirus devastates the economy
4 years, 5 months ago

Federal Government deficit hits record high of $86 billion as coronavirus devastates the economy

ABC  

Australia's budget deficit hit almost $86 billion last financial year, the biggest blow to the bottom line since World War II, Treasurer Josh Frydenberg has revealed. Key points: A forecasted $5 billion surplus for 2019-20 ended in a deficit of almost $86 billion A forecasted $5 billion surplus for 2019-20 ended in a deficit of almost $86 billion It is …

Victoria's coronavirus lockdown won't help an economy that's being held hostage by a pandemic
4 years, 6 months ago

Victoria's coronavirus lockdown won't help an economy that's being held hostage by a pandemic

ABC  

The fate of the economy, at least as far as the eye can see, has been resting on how well the authorities can control the spread of coronavirus. He says the current unemployment rate is actually more like 11.5 per cent, despite Australian Bureau of Statistics figures showing the "headline" rate is a fraction over 7 per cent. "I think …

Victorian economy hardest hit by coronavirus fallout as immigration dries up
4 years, 6 months ago

Victorian economy hardest hit by coronavirus fallout as immigration dries up

ABC  

Australia's second-most populous state was poised to take the biggest economic hit from the COVID-19 pandemic even before a dramatic spike in cases over the past fortnight forced renewed shutdowns in large parts of Melbourne. Key points: Victoria's gross state product is expected to fall 1.6pc in 2020-21 The state is vulnerable due to its reliance on immigration from overseas …

Australia is defeating coronavirus but remains at risk of losing through an 'economic own goal'
4 years, 6 months ago

Australia is defeating coronavirus but remains at risk of losing through an 'economic own goal'

ABC  

If handling pandemics was a sport, Australia has made it into the knockout stages of the coronavirus world cup. Grattan notes that in the roughly three months since the pandemic truly started hitting home in Australia, the Federal Government has announced an unprecedented $138 billion in spending measures to support businesses and households — nearly 7 per cent of the …

The coronavirus recession is like no other — and it risks becoming a chronic problem
4 years, 7 months ago

The coronavirus recession is like no other — and it risks becoming a chronic problem

ABC  

Forget what you know about recessions, this one is very different — and it may be chronic. That's not to say we're about to experience years of economic contraction or "negative growth" as economists like to say, but it's going to remain tough going for many Australians for years. This is the combination of two overbearing forces: an economy built …

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 …

Coronavirus will send WA economy into a recession for 2020–21, Treasurer Ben Wyatt confirms
4 years, 7 months ago

Coronavirus will send WA economy into a recession for 2020–21, Treasurer Ben Wyatt confirms

ABC  

Western Australia's Treasury expects coronavirus to send the state's economy into recession, with a contraction of 3.1 per cent predicted in the 2020–21 financial year as the economy takes a $12 billion hit. Key points: The economy is set to grow 0.7 per cent this financial year before contracting The economy is set to grow 0.7 per cent this financial …

Most Australians say JobSeeker coronavirus supplement should not drop as economy recovers, survey suggests
4 years, 7 months ago

Most Australians say JobSeeker coronavirus supplement should not drop as economy recovers, survey suggests

ABC  

Just over one-third of Australians think the JobSeeker allowance should be lowered as the economy improves, new data suggests, despite the payment being due to halve in September. Key points: The JobSeeker rate is due to be reduced to $550 a fortnight in September unless the Government intervenes The JobSeeker rate is due to be reduced to $550 a fortnight …

Coronavirus impact on Victorian economy to be 140 times worse than bushfires, Treasury expects
4 years, 7 months ago

Coronavirus impact on Victorian economy to be 140 times worse than bushfires, Treasury expects

ABC  

Victoria is expecting the economic damage of the coronavirus pandemic to be about 140 times worse than the impact of the bushfires on the state's bottom line. Key points: Mr Pallas said the pandemic would shrink the economy by about 14 per cent Mr Pallas said the pandemic would shrink the economy by about 14 per cent Rather than a …

Coronavirus sent shockwaves through the Australian job market. Here are the numbers you need to know
4 years, 7 months ago

Coronavirus sent shockwaves through the Australian job market. Here are the numbers you need to know

ABC  

They're some of the first solid numbers on the impact COVID-19 restrictions are having on Australians' jobs, and they've been described as "devastating" and "terribly shocking" by Prime Minister Scott Morrison. Prime Minister Scott Morrison described the number as "terribly shocking, although not unanticipated", warning more dire employment numbers would follow Thursday's announcement. It's a drop of 2.4 per cent …

Coronavirus Australia news: Australia doing better than modelling predicted as SA, WA record another day of no new COVID-19 infections, as it happened
4 years, 8 months ago

Coronavirus Australia news: Australia doing better than modelling predicted as SA, WA record another day of no new COVID-19 infections, as it happened

ABC  

Sorry Mr Morrison, but after seeing the weather forecast I think my part of Australia will stay under the doona this weekend. As hard as it may be to believe right now with states gripped in a cold snap, thanks to my colleague Kate Doyle I just learned that the Bureau of Meteorology's monthly review has found that April was …

Australia's coronavirus re-boot needs to consider population as well as the economy
4 years, 8 months ago

Australia's coronavirus re-boot needs to consider population as well as the economy

ABC  

We all know our coronavirus isolation has had a marked effect on our ability to produce GDP income and tax revenue, both so necessary for the proper running of our economy. But we are also an ageing country, with our largest demographic now approaching retirement and fewer people in the 20-60 demographic — the age group that produces the clear …

Coronavirus modelling from Victorian Treasury predicts unemployment of 11 per cent, falling property prices
4 years, 8 months ago

Coronavirus modelling from Victorian Treasury predicts unemployment of 11 per cent, falling property prices

ABC  

More than a quarter of a million jobs could be lost in Victoria due to the coronavirus pandemic, according to "catastrophic" modelling from the Department of Treasury and Finance. Key points: Unemployment is forecast to rise as high as 11 per cent while property prices are expected to fall by up to 9 per cent Treasurer Tim Pallas said it …

Coronavirus to lead to biggest contraction of Australia's economy since Great Depression, Reserve Bank warns
4 years, 8 months ago

Coronavirus to lead to biggest contraction of Australia's economy since Great Depression, Reserve Bank warns

ABC  

Reserve Bank governor Philip Lowe has warned Australia is this year likely to experience its biggest contraction in national output since the Great Depression. Key points: Dr Lowe says the national output is likely to fall by about 10 per cent over the first half of 2020 The unemployment rate is likely to be around 10 per cent by June, …

Australia unlikely to experience 'post-war' recovery after coronavirus
4 years, 8 months ago

Australia unlikely to experience 'post-war' recovery after coronavirus

ABC  

So far, so good. According to research by consultancy firm AlphaBeta — run by Andrew Charlton, Kevin Rudd's adviser through the global financial crisis — the stimulus program has already arrested the alarming decline in discretionary spending that rocked the economy during the last week of March. Spending per person plummeted an incredible 13 per cent below normal levels in …

Australia's coronavirus spending to protect economy dwarfs the GFC stimulus package
4 years, 9 months ago

Australia's coronavirus spending to protect economy dwarfs the GFC stimulus package

ABC  

The Federal Government's economic response to the coronavirus pandemic has been sweeping, including payments for job seekers and "job keepers", as well as wage subsidies and support for businesses. By comparison, Mr Morrison's response to coronavirus will be worth an estimated 3.3 per cent of Australia's gross domestic product this budget year — and 6.1 per cent next year. How …

Coronanomics: Eight things we've learnt about how coronavirus will change the economy
4 years, 9 months ago

Coronanomics: Eight things we've learnt about how coronavirus will change the economy

ABC  

This is the biggest global health pandemic in just over a century — since the Spanish flu outbreak of 1918, just after the World War 1. Treasurer Josh Frydenberg has already announced sweeping changes to Australia's Foreign Investment Review Board guidelines that will mean all foreign direct investment bids will be scrutinised with the threshold abolished. Now the Federal Government …

Australians should not have to dip into their super to cope with coronavirus
4 years, 9 months ago

Australians should not have to dip into their super to cope with coronavirus

ABC  

We live in extraordinary times and that calls for extraordinary measures. The move to grant early access to superannuation balances of up to $10,000 this financial year, and the same again next, for those in financial stress sits uneasily with me, although I recognise that my views — like the landscape before us — could alter radically in coming months …

Thanks to coronavirus, Australia is now a nation in self-isolation — but are we ahead of the curve?
4 years, 9 months ago

Thanks to coronavirus, Australia is now a nation in self-isolation — but are we ahead of the curve?

ABC  

There's new official lingo about tackling COVID-19's economic challenge. Less than 90 minutes after the Reserve Bank produced its measures, Morrison announced the government was closing Australia's border to foreigners, which will take effect late Friday. "They're hoarding, not for their own consumption — I think they're either sending some of the products overseas or they're selling it in a …

Coronavirus fallout could take Australian economy decade to recover from, KPMG says
4 years, 9 months ago

Coronavirus fallout could take Australian economy decade to recover from, KPMG says

ABC  

Australia's economy could take almost a decade to recover from the coronavirus fallout even after being cushioned by the Federal Government's $17.6 billion stimulus, according to a report out this morning. Key points: KPMG said in the best case scenario, Australia's economic growth would decline by 0.9 per cent in 2020 This, even with the Federal Government's stimulus measures, amounts …

Scott Morrison says impact of coronavirus for Australia could be bigger than global financial crisis
4 years, 9 months ago

Scott Morrison says impact of coronavirus for Australia could be bigger than global financial crisis

ABC  

The economic impact of coronavirus on Australia could be greater than that of the global financial crisis, the Prime Minister has warned, as he prepares to unveil a stimulus package designed to stop Australia from sliding into recession. Key points: The Government's fiscal response aims to protect the budget and economy during the coronavirus crisis The stimulus package will be …

Coronavirus may be the threat, but the uncertainty it's creating could really cost the economy
4 years, 10 months ago

Coronavirus may be the threat, but the uncertainty it's creating could really cost the economy

ABC  

It's time to worry. Lowe says it's too early to say, but economists warn much of the economic damage that has already occurred won't show up in the national statistics until the June quarter data. If Australia's economy contracts in the March and June quarters, it will record two consecutive quarters of negative growth — a technical recession. Wasn't the …

Retail sales hurt by bushfire crisis, but no sign of coronavirus yet
4 years, 10 months ago

Retail sales hurt by bushfire crisis, but no sign of coronavirus yet

ABC  

Australia's summer bushfire crisis has led to a rough start to the year for retailers but the coronavirus has shown "no apparent impact" so far, according to the latest official figures. Key points: Bushfires were the main reason for retail sales dropping 0.3pc in January It comes after a weak December, with the ABS revising the result to an even …

New calculations show coronavirus will sap $34 billion dollars from economy, prompting need for urgent stimulus
4 years, 10 months ago

New calculations show coronavirus will sap $34 billion dollars from economy, prompting need for urgent stimulus

ABC  

As the impact of COVID-19 takes hold, the head of Australia's Department of Treasury has flagged an urgent need for targeted stimulus, as new modelling shows $34 billion could be wiped from Australia's economy this year. Key points: The head of Treasury said the negative impact of bushfires and coronavirus would be larger than economic growth in the previous quarter …

Australia's economy beats expectations ahead of bushfire, coronavirus impacts
4 years, 10 months ago

Australia's economy beats expectations ahead of bushfire, coronavirus impacts

ABC  

Australia's economy grew by a better-than-expected 0.5 per cent in the December quarter and 2.2 per cent over the past year, according to the Bureau of Statistics. Key points: Australia's GDP growth decelerated from 0.6 per cent in the September quarter to 0.5 per cent in the three months to December But the result was better than most economists forecast, …

Government's economic plan for coronavirus to be announced ahead of May Budget
4 years, 10 months ago

Government's economic plan for coronavirus to be announced ahead of May Budget

ABC  

The Federal Government's plan to shield the economy from the coronavirus fallout will be announced ahead of the May Budget, the Prime Minister has confirmed. Key points: The plan has been kept under wraps, but Mr Morrison says the details will be revealed in the next two months Mr Morrison refused to answer questions about whether the coronavirus outbreak and …

Coronavirus isn't the only contributor to Australia's weakening dollar
4 years, 10 months ago

Coronavirus isn't the only contributor to Australia's weakening dollar

ABC  

Australia's dollar fell to an 11-year low this week, hitting 65.43 US cents on Thursday. The decline began after Reserve Bank governor Philip Lowe delivered a speech in Sydney conceding Australia's economy had weakened towards the end of 2018 and more interest rate cuts may be needed in 2019. The RBA ended up cutting Australia's interest rate three times last …

Australia's economy just entered recession on a per capita basis
5 years, 10 months ago

Australia's economy just entered recession on a per capita basis

ABC  

Australia has just recorded its second straight quarter where the economy shrank on a per capita basis. Key points: Australia's economy slowed from 4pc annualised growth at the start of 2018, to around 1pc in the second half Growth of 2.3pc over 2018 is well below RBA forecasts and places more pressure on the bank to cut rates Australia's economic …

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