Australia: Record recession free run looks set to continue for some time – Westpac

Sandeep Kanihama FXStreet Contributor

According to Bill Evans, analyst at Westpac, Australia has not had a recession, which is formally defined as two consecutive quarters of negative GDP growth or negative growth in annual terms since the early 1990’s.

Key Quotes

“There is ample evidence that the economy is weak:

GDP per capita has contracted over the year.
Consumer spending per capita has contracted over the year.
Private domestic demand has contracted over the year.

In terms of how the economy might “feel” to households, in particular, these measures certainly point to a downbeat economic climate. But this is not a recession with the associated extreme pain for households, businesses, and institutions.”

“So why has Australia not experienced a technical recession since the early 1990’s?

In terms of how the economy might “feel” to households, in particular, these measures certainly point to a downbeat economic climate.

But this is not a recession with the associated extreme pain for households, businesses, and institutions.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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