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COVID-19 Plunges Australia Into First Recession Since 1991

Phil Mercer

   SYDNEY - Australian officials say the nationhas officially fallen into
   a recession for the first time since the early 1990s. Lockdowns and
   other restrictions imposed to contain the spread of COVID-19 have
   affected most parts of the economy, and hundreds of thousands of jobs
   have been lost.

   Australia'streasurer calls it a crisis like no other-- the country's
   worst downturn in decades.

   Data from the Australian Bureau of Statistics has shown that Gross
   DomesticProduct,orGDP, has fallen bysevenpercent in
   thesecondquarterthis year. It was worse than many economists had
   predicted.

   The coronavirus pandemic hasadversely affectedalmost every sector; from
   retail and hospitality, to mining, education and tourism. The result is
   Australia's first official recession in almost 30 years.

   Officials say there could be more pain to come. A second wave of
   infections in the state of Victoria, where strict lockdown measures
   have been re-imposed, is likely to delay a recovery.

   Mathias Cormann is the Australian finance minister.

   "If you look at what was happening towards the end of June and early
   July, we were certainly heading in the right direction. Jobs were being
   restored across the economy, and indeed, across many sectors of the
   economy, activity was picking up. But then, of course, the outbreak in
   Victoria that happened. So, what we desperately need is to continue to
   get on top of the outbreak in Victoria and to open up the economy as
   much as we can as soon as we can,"Cormann said.

   Australia survived the Asian financial crisis in the late 1990s and the
   global credit crunch a decade later. A long mining boom, sound
   financial management and good fortune all helped. But the Australian
   economy was faltering before the coronavirus took hold,partly because
   of drought and bushfires.

   Opposition lawmakers sayitis a "dark day" in Australia's history.

   Unemployment is rising. The official jobless rate
   isseven-point-fivepercent. The government has extended a multi-billion
   dollarwage subsidy until March 2021.

   Two consecutive contractions in GDP is the official indicator of a
   technical recession.

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