Sydney, December 2: Australia exited recession as the economy grew 3.3 percent in the third quarter. The economy rebounded from a COVID-19 induced contraction helped by a massive stimulus. According to a Reuters report, growth is expected to be even stronger this quarter with near-zero new COVID cases.
The report further mentioned that despite the brisk pace of quarterly growth, GDP continued to contract 3.8 percent on an annual basis, suggesting the recession-stricken economy is not out of the woods yet and that policy support will be needed for some time. Australia Slips into First Recession in 30 Years Amid COVID-19 Pandemic, Worst Quarterly Decline in GDP Since 1930's Great Depression.
Australia Exits Recession as Economy Grows 3.3% in Third Quarter
— AFP News Agency (@AFP) December 2, 2020
The rebound was led by household spending, which rose 7.9 percent, the data showed. The annual output is not expected to reach pre-COVID levels until late next year, provided Australia is able to keep the virus at bay.
This year, Australia slipped into its worst recession in 30 years amid the coronavirus pandemic. June quarter GDP numbers show that the economy slumped by 7 percent, the worst fall on record and a second straight contraction.
(The above story first appeared on LatestLY on Dec 02, 2020 07:25 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).