Australian Economy Suffers Steepest Contraction in Q2 2020
Arslan Butt • 1 min read
The Australian economy suffered its worst ever contraction ever recorded during Q2 2020 on account of the raging coronavirus pandemic, and with fresh outbreaks across the country, recovery is expected to take even longer. According to data released by the Australian Bureau of Statistics (ABS), the GDP for the second quarter of the year came in at -7% QoQ, following a 0.3% contraction in Q1 this year.
Economists had forecast a contraction of 5.9%, but the impact of the pandemic was more severe. On an annual basis, the economy contracted by 6.3% between April and June.
The economy suffered the steepest contraction despite the government’s various fiscal stimulus efforts that were aimed at protecting jobs and incomes of workers in the country. Since the beginning of the pandemic in March, over a million Australians have been rendered jobless as a result of the lockdowns.
An expected rebound in the current quarter is also looking difficult as the state of Victoria remains under lockdown due to a resurgence in cases. Economists maintain that the government will need to roll out more stimulus measures to offset further damage to the economy due to the coronavirus pandemic.