Australia’s financial system grew by 3.3% within the third quarter, rebounding from its first recession in practically three a long time because it recovered from pandemic-related shocks, in line with figures launched Wednesday.
Treasurer Josh Frydenberg informed reporters the nation nonetheless has lots of floor to make up from the coronavirus downturn.
“Australia’s recession may be over, but Australia’s economic recovery is not,” he stated.
Despite the newest quarterly rise, the financial system contracted at a 3.8% annual tempo. That’s after GDP fell by 0.3% within the first quarter after which by a report 7% within the second quarter.
“But the Australian economy has demonstrated its remarkable resilience and Australia is as well positioned as any other nation on Earth,” Frydenberg stated. “Today’s national accounts represent a major step forward in Australia’s economic recovery.”
Before this yr, Australia had managed to keep away from a recession for 28 years. The financial system grew even in the course of the international monetary disaster because of robust demand for Australia’s mineral exports and a sturdy home sector.
The better-than-expected figures had been encouraging, economists stated.
“The rebound in Q3 GDP reversed around 40% of the decline during the first half of the year and we expect output to return to pre-virus levels by mid-2021,” Ben Udy of Capital Economics stated in a commentary.
Now on high of the pandemic, Australia is enduring a spate of rocky relations with China, its greatest buying and selling associate.
Frydenberg stated the scenario with China is “very serious” however his authorities is specializing in putting offers with different international locations in Asia and past.
“We have great produce, and we have great services, and we have great resource sectors, and I’m very optimistic about the opportunities for our exporters around the world,” he stated.
Australia’s relationship with China worsened this week after a Chinese official tweeted a pretend picture of a grinning Australian soldier holding a bloodied knife to a toddler’s throat.
Australian Prime Minister Scott Morrison referred to as the picture “repugnant” and demanded an apology from the Chinese authorities. But China has not backed down.
The publish took goal at alleged abuses by elite Australian troopers in the course of the battle in Afghanistan.
Tensions have been rising this yr because the Australian authorities referred to as for an unbiased inquiry into the origins of the pandemic. China has imposed tariffs and different restrictions on numerous Australian exports.