Australia experiencing a contraction for the first time in 29 years


Finance Minister warned that the current quarterly results will be worse

One of the largest countries in the world is experiencing a contraction in the economy. Photo:

Australia’s economy has slowed down. According to the Australian Bureau of Statistics (ABS), the country’s GDP fell by 0.3% in the first three months of the year – for the first time in 29 years.

Household consumption fell 1.1% in the quarter. This is the first decline in this indicator since December 2008 and the steepest decline in 34 years. In the last 12 months, the country’s economy grew by only 1.4%, and is the weakest indicator since September 2009.

Australian Finance Minister Josh Friedenberg said a recession was inevitable, shocking the country’s economy, first a wildfire, and then an epidemic. The minister warned his fellow citizens to be prepared for “upcoming difficulties”, as the results of the current quarter would be worse.

He noted that the Australian economy did not harm many other countries, thanks to the quarantine restrictions introduced in time, which allowed to curb the increase of cases of coronovirus infection and provide material assistance to the population.

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Earlier, Finance Minister Sergei Marchenko explained why there are no conditions for defaults or restructuring public debt in Ukraine and emphasized that the budget situation is manageable. He stated that the default is a political decision and there are no economic grounds for Ukraine’s default.

The minister also said that this time Ukraine is entering an economic crisis “in a fairly strong macroeconomic situation, quite stable”. “The budget situation is not easy, but we control it and it is manageable. There is no basis for any apprehension, risk and concerns, ”the minister said.

Read: Argentina’s nine defaults: what lesson Ukraine can learn

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