Australia GDP contracted -0.3% qoq in Q1, matched expectations. That’s the first contraction in 9 years. Also, the recession should have started in Q1, for the first time in 29 years. Annually, growth slowed to 1.4% yoy, lowest since September 2009 when Australia was in the midst of the global financial crisis.
Treasurer Josh Frydenberg confirmed that the economy is in recession and “that is on the basis of the advice that I have from the Treasury department about where the June quarter is expected to be.” “Based on what we know from Treasury, we’re going to see a contraction in the June quarter, which is going to be a lot more substantial than what we have seen in the March quarter,” he added.
Though, Frydenberg also said “in the face of a one-in-100-year global pandemic, the Australian economy has been remarkably resilient.” “This strength gave us the fiscal firepower to respond as we have done; Around $260 billion in economic support, or the equivalent of more than 13 per cent of GDP.”
Also from Australia, AiG Performance of Construction Index rose to 24.9 in May, up from 21.6. Building permits dropped -1.8% mom in April, better than expectation of -15.0% mom.
