Australian Economy Suffers Steepest Contraction in Q2 2020

The Australian economy suffered its worst ever contraction ever recorded during Q2 2020 on account of the raging coronavirus pandemic

Australian Economy Suffers Steepest Contraction in Q2 2020

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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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