New Delhi (NVI): The recession is officially over, with the Australian economy growing 3.3 per cent in the September quarter, according to new figures.
The economy went into recession in the June quarter after the worst contraction in gross domestic product since World War II.
But the Australian Bureau of Statistics (ABS) today confirmed an uptick in GDP, after shrinking 7 per cent in the previous quarter.
Economic activity increased 3.3% in September quarter https://t.co/eiQMZmgT1g pic.twitter.com/MyPrjCiHnO
— Australian Bureau of Statistics (@ABSStats) December 2, 2020
Real GDP increased by 3.3 per cent beating market expectations. This is the largest quarterly increase since 1976.
The new figures show a household consumption spike of 7.9 per cent in the September quarter, the largest rise in the 60-year history of the national accounts.
The rise claws back a majority of the unprecedented 12.5 per cent drop in the June quarter, as services spending jumped 9.8 per cent.
“Household spending in the quarter was driven by partial recovery in spending on hotels, cafes and restaurants, recreation and culture, and transport,” the ABS said regarding the rise in 14 of the 17 categories.
Furthermore, the resumption of elective surgeries and increased visits to health providers saw spending on health categories jump 26 per cent.
Meanwhile, Victoria was the only state to record a fall, 1 per cent, which was driven by declines in household spending and investment.
New South Wales and Queensland saw the largest recoveries in demand, registering a 6.8 per cent uptick.
That was just ahead of South Australia (6.7 per cent) and the Northern Territory (6 per cent).
Spending on food rose 6.6 per cent as families prepared for the second coronavirus lockdown.
The technical definition of a recession is two consecutive quarters of negative growth, which occurred in the June quarter.
However, the easing of coronavirus restrictions in most states and territories contributed to the economic rebound in the September quarter.
-CHK
