Australia’s economy suffered its sharpest economic contraction since the Great Depression due to the pandemic, with data released yesterday confirming the country is in its first recession in 28 years.
The economy shrank 7% in the June, the biggest contraction since records began in 1959, the government reported.
Prime Minister Scott Morrison told Parliament: “This is a devastating day for Australia.”
The country is now in recession for the first time in 28 years following a 0.3% drop in the first quarter of the year, since it has logged two straight quarters of contraction.
“Today’s national accounts confirm the devastating impact on the Australian economy from COVID-19,” Treasurer Josh Frydenberg said.
“Our record run of 28 consecutive years of economic growth has now officially come to an end,” he added.
The previous biggest downturn since Australia began keeping records in 1959 was a 2% fall in June 1974. Economists estimate a sharper decline of 9.5% in 1930, when Australian became one of the countries worst affected by the Great Depression.
Prime Minister Scott Morrison told Parliament: “This is a devastating day for Australia.”
The Buzz | Australia’s economy takes sharpest dive since the 1930s
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