Australia out of recession as economy roars back

Australia is now technically out of its COVID recession, following positive growth figures released by the Australian Bureau of Statistics today.

The economy grew 3.3 per cent in the September quarter, on the back of a 7 percent contraction in the June quarter.

New data from the ABS shows a massive surge in consumer spending, with the accommodation and food services growing a whopping 41 percent between June and September, while arts and recreation was also up 14.7 percent.


Analysts were predicting growth of around 2 percent, and say our response to the pandemic is the reason we’re ahead of the world.

Australia’s spend on frontline health services was able to stay lower that most other countries, while we were also able to keep the construction industry kicking despite various lockdowns.

The economic growth does mean that Australia is technically out of a recession, but Treasurer Josh Frydenberg says we’re not out of the woods just yet.

“Today’s increase in the September quarter of 3.3% is the largest quarterly increase in GDP since 1976. It follows a 7% fall in the June quarter.

“Technically, Australia’s recession may be over, but Australia’s economic recovery is not.

“There is a lot of ground to make up and many Australian households and many Australian businesses are doing it tough – very tough. Victoria – a quarter of the national economy – has only just begun its recovery after the devastating second wave,” the Treasurer said. 

Victoria’s economy was the only one to contract within the state, with the Treasurer predicting that if they’d recovered in line with the rest of the country, our quarterly growth rate could have been closer to 5 percent.

Treasurer Josh Frydenberg is also extremely happy with the unemployment figures.

The effective unemployment rate has come down from a peak of 14.9% to 7.4%. 

“The participation rate is at 65.8% – approaching its pre-crisis level. And the Reserve Bank has said that the JobKeeper program has saved at least 700,000 jobs.

“In October with the recovery gaining momentum, there were 2 million fewer workers and 450,000 fewer businesses on JobKeeper in the month of October compared to September.,” the Treasurer said.

The tourism sector continues to be hit hard, with international borders closed. But the treasurer says this provides an opportunity for domestic tourism to grow.

Domestic tourism will be a beneficiary of the international borders being closed.

“Obviously, we want those international borders to open and as you refer to, a lot will depend on that vaccine, but domestic tourism, and we welcome the announcements by the state premiers in recent days (about borders), will – will pick up absolutely – we’ll pick up.

“I saw today Rex Airlines saying they’re putting on a lot more flights. Virgin a lot more flights. There’s going to be strong competition for that domestic tourism dollar and we are very hopeful about a vaccine,” Treasurer Frydenberg said.