Australia-Q1 economy shrinks, recession in sight

Summary of main economic information for Wednesday 15 January 2020

SYDNEY, June 3 (Reuters) – The Australian economy has
contracts in the first quarter when the country was hit
by large fires and by the health crisis linked to
coronavirus, which has caused business closings and losses
jobs, foreshadowing of the first technical recession
for three decades.

According to data released Wednesday by the National Office
statistics (ABS), the gross domestic product (GDP) of
Australia contracted 0.3% over the January-March period,
its first decline in nine years.

Annual growth fell 1.4%, to lowest since
the 2008-2009 global financial crisis.

When asked if the country was already in
Recession, the Secretary to the Treasury replied in the affirmative.
“Based on what we know at Trsor, we will see
a contraction in the second quarter which will be significantly more
important than the one we saw for the quarter
finished in March, “Josh Frydenberg told reporters
Canberra.

The decline in the economy was notably caused by the
fall in household consumption, with reduced expenses
in large proportions for clothing, automotive, or
entertainment.
(Swati Pandey; French version Jean Terzian)

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