Australian economy could shrink by 0.3% in Q1 due to pandemic: Economists

Australia's economy is expected to contract in the first quarter of the financial year, which may technically push the country into recession for the first time in three decades. According to reports, economists have predicted the Australian economy to shrink by 0.3% in the first quarter of the financial year. If that happens, it will be Australia's first quarterly decline in nine years. Australian economy like the rest of the world is hit hard by the novel coronavirus outbreak and the restrictions that followed. 

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The Australian economy was already in shambles since the country suffered a major blow by bushfire last year with the tourism sector down in the continent-state. Many economists have also predicted a significant decline in the second quarter of the financial year, saying that unemployment looms large in the country. However, some economists have forecasted positive growth for Australia in Q1, predicting a 0.1% surge in the first three months of the financial year. The positive growth in Q1 is mainly credited to supermarkets and export demands. 

Read: US Economy Shrank At 5% Annual Rate In Q1

COVID-19 outbreak

The coronavirus outbreak became a major problem in Australia when cases jumped from being 100 in early March to 7,000 as of now. Australia shut down its borders and restricted movements of people to curb the disease outbreak, but it also took a major toll on its economy. Now, several states in the country have further eased restrictions in a bid to revive its economy. According to figures by Johns Hopkins University, Australia has recorded 7,204 confirmed coronavirus cases so far, of which 103 people have lost their lives. The mortality and infection rates in Australia are relatively lower than in other major countries in the world.
 

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