Australia’s recession is officially over, and here’s how we can rebuild

Massive government stimulus has helped end Australia’s recession, and here are three things that can help speed up the recovery.

Opinion: Australia’s 2020 coronavirus recession was short, sharp and painful, and the big challenge now is how do we rebound from the biggest economic downturn since the Great Depression.

Today’s GDP data shows the economy grew 3.3 per cent in the September quarter after plunging 7 per cent in the June quarter and dropping 0.3 per cent in the March quarter.

It marks the official end of recession – typically described as two quarters of negative economic growth – but unemployment remains high and trade problems with China are a black cloud over 2021 and beyond.

Recovering quickly and regaining confidence is the key to reducing COVID’s economic pain, and our real estate market appears to be leading the way, with home values rising in all capital cities in November and regional markets even stronger.

The Australian Bureau of Statistics says household spending drove the economic rebound in the September quarter, up 7.9 per cent as trading restrictions and social distancing measures eased across most states and territories.

Treasurer Josh Frydenberg has already had a huge year, showering stimulus cash on Australians everywhere, and it looks to be working so far.

There are other things that could help rebuild the Aussie economy from its COVID crunch. Here are three.

IMMIGRATION BOOST

Immigration has plunged towards zero amid international border closures, and the recent federal budget forecast the largest hit to Australia’s population growth in more than a century.

Shoppers have returned to CBDs as the economy recovers. Picture: NCA NewsWire/Gaye Gerard

While bringing in migrants is impossible right now and may be tricky if unemployment remains high, remember that people produce economic growth simply because they consume stuff.

There shouldn’t be a shortage of people wanting to move to Australia when borders reopen, given our success in dealing with the coronavirus compared with much of the world.

BUY AUSTRALIAN

China’s attacks on Aussie exports including wine make it more important than ever for locals to try to buy more local products. China isn’t just our biggest export market – it’s often as big as the remaining top 10 nations combined.

Here’s where every Australian consumer can play a role to recover from the recession, by making conscious buying decisions.

Collectively spending a few extra dollars each week at local businesses adds billions of dollars a year to our economy.

MAKE EMPLOYMENT EASIER

Jobs are the key to growing the economy, and despite the recession and higher unemployment, many employers are struggling to find the right people or are scared to take on staff given COVID uncertainty and current industrial relations rules.

Small business groups have called for much simpler award structures, and it appears we may see some progress on this in the coming days.

Both sides of politics need to work together on boosting jobs and our industrial relations system. It’s too important to ignore.

@keanemoney

Originally published as Australia’s recession is officially over, and here’s how we can rebuild