CANBERRA – The coronavirus pandemic pushed Australia’s economy into recession for the first time in 29 years in the first quarter of the year, and the situation is expected to get worse.
T Treasurer Josh Frydenberg said Wednesday the current June quarter will be the second in a row in which the Australian economy has contracted.
A recession is defined as at least two straight quarters of contraction. Data released on Wednesday showed the economy shrank 0.3% in the January-March quarter due to destructive wildfires and the early stages of Australia’s coronavirus lockdown.
Weak household consumption was a major factor behind the decline, as millions have lost their jobs. “The June quarter, the economic impact, will be severe.