"Sarah Hunter from BIS Oxford Economics said that the nation looks like escaping a worst-case scenario akin to the Great Depression.There's an economic consensus that the Government should borrow and spend at least part of the $60 billion JobKeeper shortfall to prevent a double-dip recession later this year. And if you take away the impact of our trade, the economy would have shrunk by a stunning 1.1% in the March quarter.As it is the domestic private sector has shrunk 1.4% over the past year – again the worst result since the GFC, but given how poorly it was performing in the past 12 months, not wholly unexpected:But while total government spending has improved our economic growth, overwhelmingly it has come from consumption – things like spending on NDIS, and on government wages and support. She's not aloneThis small business stood for a century, but Covid-19 closed it in monthsShe lost her job in 2008. "Households have already moved to boost precautionary savings, with the savings rise jumping to 5.5 per cent from 3.5 per cent in the fourth quarter of 2019 even as income was boosted by social assistance benefits," noted EY's chief economist Jo Masters. Wednesday’s figures are bad but worse is yet to come, and the path to recovery will be long and it should be paved with public investment Australia’s economy shrank for the first time in nine years in the March quarter as the Covid-19 pandemic struck, pushing the country into a recession. The reality is, as the treasurer Josh Frydenberg confirmed on Wednesday, we already are in a recession. "These harsh numbers reflect the harsh reality we face," Frydenberg said, adding it will take "a number of years" to pay back this debt. Housing Expectations for the housing market look promising, with 52% … But when the amount we import falls, then that actually helps increase the growth of GDP. "Please sign in to contribute to the Mamamia Community. It is not because our exports increased, but that they fell by less than did our imports.Imports falling is not actually a good sign. All rights reserved. Frydenberg added: "Our economy has taken a big hit and there are many challenges we confront. When the The figures also revealed GDP per capita fell in the past year – the first time that has happened since the GFC:The story of the economy in the March quarter is that of three things – government and household spending, and imports. It has now been more than eight years since our spending growth has been above the long-term average. GDP figures from the Bureau of Statistics show Australia's economy shrank 0.3 per cent in the March quarter, amid bushfires and the early stages of the coronavirus pandemic.This makes it certain that Australia will suffer its first recession in 29 years, as the full impact of coronavirus-related shutdowns occurred during the current June quarter.Economists widely define a recession as two consecutive quarters of GDP contraction, which are now certain to occur.The last time Australia recorded two consecutive negative quarters for GDP was March and June 1991, dubbed by then treasurer Paul Keating as "the recession we had to have".Even before the full effect of the coronavirus hit, Australia's economy recorded its slowest annual growth in more than a decade, according to the ABS. Data from the Australian Bureau of Statistics (ABS) showed the A$2 trillion ($1.39 trillion) economy contracted 0.3% in the quarter ended March, the first decline in nine years. And so if we are to have any hope of recovery, and if we want that recovery to lead to long-term benefits, then we need the government to ramp up investment and ramp it up quickly.

"Households are absorbing higher unemployment, elevated job insecurity, falling house prices, concerns about a second COVID-19 outbreak, all against a backdrop of already high debt levels.

Australia is about to enter a recession, according to 87% of economists in the latest Finder survey. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Australia is certain to enter its first recession in 29 years after GDP contracted by 0.3 per cent in the March quarter amid bushfires and the early stages of the coronavirus pandemic. "So we entered this very difficult crisis from a position of weakness rather than strength. If you're not already a Mamamia member, Josh Frydenberg during the economic update on Thursday. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. In March both imports and exports fell, but imports fell by much more:This is why economists and the treasurer can say “net exports” added to GDP growth. "However, Labor's shadow treasurer Jim Chalmers took aim at the Government's economic performance prior to the pandemic. "Finance Minister Mathias Cormann said "we need to keep things in perspective". "When combined with the ongoing drought, which saw farm GDP fall by 2.4 per cent in the quarter, and the devastating impact of the fires that were raging across many states, one looks back on the March quarter, and there wasn't much good news.

"The size and speed of the decline are unprecedented and, as currently legislated, there is a substantial policy cliff edge at the end of the third quarter [when the majority of the additional support for households comes to an end] that must be navigated. Our panic-buying kept the figures from being even worse than they might have been. Image: Getty. With $58 billion (and counting) wiped off the Australian stock market today, 800 points shaved off the DOW, 2.9% being shed from the US's S&P 500, and the German economy …

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