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Australia is officially out of a recession.
New data released by the Australian Bureau of Statistics (ABS) showed that the nation’s Gross Domestic Product – or GDP – rose 3.3 per cent in the September quarter.
Throughout 2020 Australia’s GDP in total has fallen 3.8 per cent.
Head of National Accounts at the ABS, Michael Smedes, said the recovery is still only partial.
“Following the record 7.0 per cent decline in the June quarter, Australia experienced a partial recovery in the September quarter,” said Mr Smedes.
“As a result, economic activity fell 3.8 per cent through the year to September quarter.”
According to the ABS, much of the recovery was driven by household spending.
“Household spending drove the economy, rising 7.9 per cent due to increased spending on both goods and services,” the ABS said in its release.
“Spending on services rose 9.8 per cent, driven by spending on hotels, cafes and restaurants, health and recreation and culture as containment measures were relaxed.
“The easing of restrictions also increased demand for goods, which rose 5.2 per cent.”
Treasurer Josh Frydenberg said the economic recovery for the nation has begun.
“The Australian economy is coming back. Facing a once-in-a-century pandemic that has caused the greatest economic shock since the Great Depression,” Mr Frydenberg said.
“Australia has performed better on the health and on the economic fronts than nearly any other country in the world.
“Australia’s economic recovery is under way.”
Mr Frydenberg was quick to point out that technical definitions can be removed from people’s day to day lives.
“Technically the recession is over, but the recovery is not,” Mr Frydenberg said.
“We know that a lot of Australian families are in a pretty tough financial situation and a number of Australians are still out of work.”
The dramatic reversal comes just one quarter after the ABS revealed that in the three months from April to June the nation’s GDP shrunk by 7 per cent, marking the biggest drop since records began in 1959.
The previous quarter – which recorded activity across January to March – Australia’s GDP fell by 0.3 per cent.
A recession is defined as two consecutive quarters in which a nation’s GDP shrinks.