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Recession won't be as deep, recovery hopes intact

Matthew Cranston

Australia's first recession in 29 years is shaping up to be shallower than economists first thought and could leave the September and December quarters in positive territory despite Melbourne's lockdown and a looming $73 billion fiscal cliff.

Key partial GDP data including construction and business investment over the last few days indicates that while the COVID-19 economic hit in the June quarter will be the biggest on record, it will less severe than many forecast, supporting the view of the Reserve Bank and Treasury.

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Matthew Cranston was The Australian Financial Review’s United States correspondent.

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    Original URL: https://www.afr.com/policy/economy/recession-won-t-be-as-deep-recovery-hopes-intact-20200825-p55p6p