(aawsat) - According to official data released today, Australia managed to emerge from the recession in the third quarter of 2020 by registering gdp growth of 3.3% year-on-year, but this has not prevented major financial policymakers from warning of unclear prospects.
After Australia was able to control the Coved-19 pandemic, these figures demonstrate the resumption of corporate activity and increased consumer spending in the country. The Australian Bureau of Statistics said strong growth in the household consumption index, which rose 7.9% compared to the second quarter, contributed strongly to the economic recovery.
However, Central Bank Governor Philip Lowe warned that these positive economic indicators are masking difficulties in many sectors. "These figures cannot hide the fact that the recovery will be irregular, chaotic and prolonged," Lowe told parliamentarians yesterday. Some sectors of the economy are not well and others are facing great difficulties."
Lowe said economic growth is set to be strongly positive in the third and fourth quarters of this year, with the central bank projecting the economy to grow by 5% next year and then 4% in 2022. However, he explained that even with the macroeconomic growth now strongly, GDP will not reach the pre-corona virus pre-pandemic level before the end of 2021.
The unemployment rate is expected to remain above 6% within two years, he said, adding that due to high unemployment, wage and price pressures are likely to remain low. Core inflation is expected to reach only 1% next year and 1.5% in 2022, Lowe said.
The Australian economy has not yet fully recovered from the pandemic, with GDP in September falling 3.8% year-on-year.
Australia's economy fell into recession after the country's GDP fell for two consecutive quarters due to the pandemic, with a decline of 0.3% in the first quarter and 7% in the second quarter. A country's economy is in recession if gdp declines in two consecutive quarters.
The Australian economy returned to growth despite closures in September and October in Victoria, which alone accounts for a quarter of the country's gdp.
Like the rest of the world, measures taken by the authorities in Australia to curb the spread of the new CORONA virus have crippled entire economic sectors. About 1 million people in this country lost their jobs, while some of those who were more fortunate had reduced their hours of work or had their salaries diminished.
The government and the central bank have launched a massive stimulus package that has injected billions of dollars into the economy in an effort to help those affected and revive the economy. Last November, the Australian Central Bank cut its key interest rate to 0.10% in a bid to accelerate the recovery.