Australia's economy grew again after recession

finance

Australia's economy grew again after recession

GDP rose by 3.3 percent in the third quarter compared to the previous quarter

The economy in Australia is growing again after the recession caused by the corona pandemic in the first six months of the year. The gross domestic product (GDP) increased by 3.3 percent between July and September compared to the second quarter, said the national statistics office. From April to June the GDP shrank by 7 percent. That was the sharpest drop since the quarterly data began to be recorded in 1959.

Since the Australian economy had already contracted on a quarterly basis in the first three months of the year, the country had slipped into a recession – the first since 1991. The main reason for the sharp decline in the second quarter was the slump in private consumption. After the corona lockdowns were eased in many regions of the country, this picked up again from July and rose by almost eight percent in the third quarter.

“We have turned the trend and a recovery has started,” said the Governor of the Australian Central Bank, Philip Lowe. However, he emphasized that economic performance will probably only return to the level before the corona crisis at the end of 2021.

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