Australia’s economy is officially in a recession after June quarter data revealed the nation’s gross domestic product (GDP) has shrunk by 7 per cent.
Data released by the Australian Bureau of Statistics (ABS) revealed that in the three months from April to June the nation’s GDP suffered its biggest drop since records began in 1959.
The previous quarter – which recorded activity across January to March – Australia’s GDP fell by 0.3 per cent.
Treasurer Josh Frydenberg said today’s figures could have been far worse without financial assistance.
“Without the Morrison government’s economic support, 700,000 more jobs would have been lost and the unemployment rate would have been 5 percentage points higher,” Mr Frydenberg said.
“In March Treasury were contemplating a collapse of GDP of more than 20 per cent.
Mr Frydenberg estimates the restrictions will blow a $12 billion hole in the nation’s September GDP figures.
Additionally, he expects up to 400,000 Australians to lose their job or have their hours reduced to zero as a result of the restrictions.