Good news for Australia, with our economy appearing to already be on the mend from coronavirus.
The nation recorded a recession earlier this year, for the first time in almost three decades.
However, the Reserve Bank says we may be already coming out of recession, expecting the economy to have grown slightly in the September quarter.
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It was feared that Victoria’s second lockdown may have worsened the state of the national economy, but yesterday’s Senate estimates hearing heard different.
“Our best guess is it looks like the September quarter for the country recorded positive growth rather than slightly negative,” the RBA deputy governor Guy Debelle told the hearing.
“As best as we can tell, the growth elsewhere in the country was more than the drag from Victoria, and possibly the drag from Victoria was a little less than what we guessed back in August,” he said.
We still won’t know for a couple of months, exactly how good the September quarter is.
It’s not all good news with the Reserve Bank still worried about the next steps.
It’s warned that government subsidies need to continue until unemployment rates drop well below six percent, with concerns that the removal of income support and loan repayment deferrals over the coming months will have a significant impact.