These Australian journalists were attacked by US police

Australia is suffering its first recession in 29 years due to Covid-19

According to the Australian Bureau of Statistics, the country’s economy shrank 0.3% in the first three months of the year compared to the previous quarter. Treasurer Josh Friedenberg warned Wednesday that GDP would shrink between April and June, marking the second quarter in a row. Compression for Australia.

Covid-19 shutdown Australia has ended 29 years of economic growth. The trend was partly fueled by China’s indifferent appetite for products such as iron ore and coal, as it became the world’s second largest economy.

Despite the recession, Friedenberg said Australia was avoiding other countries’ economic fortunes and health fortunes because of other measures, including economic stimulus efforts.

According to Ben Uder, an economist at Capital Economics in Australia and New Zealand, Australia’s GDP is expected to shrink by 9% in the second quarter.

“Before the virus ban took effect, GDP was declining and Q2 was going to decline even more sharply. [the second quarter] Before slowly rising in the second half of the year, ”he wrote in a research note on Wednesday.

Uday said the fall in GDP in the first quarter was mainly due to the fact that consumers started spending more on services as they began to distance themselves socially.

The emerging virus was expected to fall by about 20% from pre-virus levels in the second quarter, as households stopped buying food and restrictions on entertainment and retail services were introduced.

Rising iron-shaped prices may support mining investments, but non-mining companies have spent significantly on their investment plans, he said.

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