It’s official. We’re in recession, after two consecutive quarters of negative growth.
Matters couldn’t be clearer. As the official release says: “Australian Gross Domestic Product (GDP) fell 7.0 per cent in the June quarter, the largest quarterly fall on record, according to figures released by the Australian Bureau of Statistics (ABS) today. This follows a fall of 0.3 per cent in the March quarter 2020.”
Want some context? The previous biggest fall on record was two per cent, less than a third of today’s figure, back in June 1974.
The result is also higher than expected. The usually ultra-cautious Treasury expected a six per cent fall.
And remember: today’s figures are for the June quarter. That means, of course, that they only cover April, May and June — and miss all of the impacts of Daniel Andrews’ draconian stage four lockdowns on the economy of our second-largest city Melbourne.
Just wait until we see what September says.
Got something to add? Join the discussion and comment below.