skip to Main Content

Australia national accounts – early stages of the virus recession now clear

Australia has endured a sequence of unplanned disasters over the last 12 months. The lingering effects of a long drought. Massive bushfires. Floods. And, then, if that wasn’t enough, along comes the worst of them all – the coronavirus. The latest release by the Australian Bureau of Statistics of the – March-quarter 2020 National Accounts data (June 3, 2020) – is now recording the early impacts on our national economy from the Pandemic. It will be worse when the June-quarter figures are released in September. Today’s data confirms what we have been tracing for several quarters – the Australian economy has now crossed the line into negative growth with sustained negative contributions from all private sources of expenditure. Household Consumption expenditure fell sharply as households increased their saving ratio. The overall contraction is less than has been recorded to date in other nations. But we should wait until the June-quarter before we get too optimistic. The obvious conclusion is that the Federal government has not supported an ailing economy enough to avoid the damage that negative growth brings. An urgent and major shift in fiscal policy towards further expansion is definitely required.

Read More
Back To Top