SYDNEY, Australia Australia – Australia’s economic engine has been running smoothly for almost three decades. Backed by rich natural resources, fast-growing trade with Asia, a talented workforce and a vibrant immigration rate, the country avoided stumbling even during the 2008 global financial crisis.
But the nation sometimes known as “The Lucky Country” could not escape the torment of Kovid-19.
On Wednesday, Australia officially fell into recession – defined as the first two quarters of negative growth – for the first time since 1991. Australian officials said the economy was down one per cent during the three months ended June, a comparable decline to the previous quarter. Its poor performance since the government started keeping records in 1959.
“Today’s devastating numbers confirm what every Australian Australian knows: that Covid-19 has hit our economy and our lives like never before,” Treasurer Josh Friedenberg said on Wednesday. Was.
The Australian Australian economy is likely to return after the Covid-19 is over. Its performance has been stronger than in other countries like Britain, where output has fallen by 20 per cent in recent quarters.
However, the new data marked a long-awaited end in a country that felt like an endless boom in a country where one or more people have never experienced a recession.
“That system was really shocked,” said Jackson McCray, a 27-year-old Melbourne-based musician who lost much of his life when the concerts were canceled. He has received government assistance for the telecommunications company by reading the gas meter and supplementing his income.
Mr McCare said it was a “wake-up call” that unemployment could strike so quickly. “This could happen to us.”
Even after the Covid-19 fades, past Australia could face a difficult time matching its past success. China, its largest trading partner, has seen its economic growth slow in recent years. Relations between the two countries are becoming increasingly tense. China’s Ministry of Commerce has imposed tariffs on Australian Australian barley and can do so for Australian Australian wine.
Australia Australia faces other long-term economic problems. With climate change, disasters such as catastrophic wildfires can become more frequent. Wage growth has remained stable. Due to the housing bubble in the country’s most populous cities, Sydney and Melbourne, many people had to bear the brunt of large debt, while preventing others from buying.
Economists said the global impact of the epidemic, as well as the recession brought about by last season’s wildfires, could last at least a year. The federal government has responded with 150 150 billion in federal and state stimulus packages and ding 66 billion in support from the central bank.
“We were saved from what could have been worse,” said Andrew Grant, a senior lecturer at the University of Sydney Business School. “But it could get worse before it got better.”
Australia Australia’s long boom has been part of policy and destiny. Economists say the country’s prudent monetary and monetary policies have played a role, as has its political stability.
But wheat Australia has also benefited from iron and coal reserves that have helped nourish China’s economic growth with its wheat and livestock exports. And the steady flow of migrants has helped fill tight labor market spaces. International Australia has also become a popular destination for international students.
The government’s decision to lock down quickly in March during the first outbreak of the virus during the wildfire season, which hampers tourism, has sharply reduced household spending on transport, hotels and restaurateurs. Border sanctions hit the tourism and education industries. Australia Victoria, Australia’s second most populous state, is under lockdown as it fights the boom driven by returning passengers.
More than a million Austral Australians were unemployed in July, and the subsequent unemployment rate then..5 per cent was the worst in 22 years. That rate is likely to rise as the recession continues, economists say.
For all its problems, officials and many economists have said that the rich country is in a better position than others to handle the coronavirus crisis. “It’s never good to have a recession. However, this was a very unavoidable one, “said Rob Henderson, former chief economist at National Australia Australia Bank.
Although reopening the economy is seen as a trade-off with public health priorities, experts say that eventually suppressing the virus will help the economy achieve a permanent recovery.
“If we keep having this repeat episode, it’s a big problem for business confidence and consumer confidence.”
But the long-term effects remain dire for many Austral Australians.
“I know there is no exit plan,” said Reuben Lewis, 31, a jazz musician who relies on government assistance. “There’s going to be new thinking about how people sustain their work.”
Livia Albeck-Ripka contributed reporting from Darwin, Australia Australia.
