Australia entered its first recession in 29 years after the economy retreated by 0.3 percent until March, with the effects of forest fires and the Corona virus on markets, ending the country's extraordinary and sustained economic growth process.
Treasury Secretary Josh Friedenberg told reporters on Wednesday that the recession is inevitable, after the Australian Bureau of Statistics published national accounts that showed low gross domestic product in the first quarter of 2020. The economy has grown by only 1.4 per cent during the past twelve months , The weakest performance since the 2008 global financial crisis.
While Friedberg said that the downturn in Australia was less severe than many other countries grappling with the economic shock linked to the Coronavirus, people have warned not to prepare for the "difficult next days" because the June results will be worse than March.
Friedberg said, according to the British newspaper, The Guardian, that the government would provide its comprehensive economic update in late July, and implied that the government would either reduce the $ 1,500 wage benefit to all recipients, or it would provide a differential benefit depending on the worker’s income.