Recession announcement ‘a sad day for Australia’

Описание: Unlike its 1991 predecessor, the current recession is truly the “one we were indeed forced to have,” according to Sky News Political Editor Andrew Clennell.

Australia recorded its last recession in June 1991, with Paul Keating Australia's treasurer.

The recession was severe, with unemployment climbing to almost 11 per cent in 1992 and interest rates surging to 10 per cent.

Mr Clennell said Mr Keating’s claim the downturn was the “recession Australia had to have”, became an “extremely politically damaging statement for the Hawke and Keating governments.”

“For obvious reasons then, as Josh Frydenberg earlier this afternoon announced a recession, he avoided a similar term,” Mr Clennell said.

“It would have been more appropriate if Josh Frydenberg had said that today. Because of the health shutdown, this is the recession that were indeed forced to have.”

The treasurer on Wednesday confirmed Gross Domestic Product contracted by 0.3 per cent in the March quarter, with economists certain the June quarter will be even worse.

That means Australia will slip into its first recession in 29 years due to the shutdown measures enacted to slow the spread of COVID-19.

Mr Clennell said the result is a “sad day,” but it’s worth remembering Australia’s relative economic strength compared to comparable nations.

He said the government will be hopeful the economy can begin to recover now the stringent lockdown restrictions are being lifted across Australia.

“Frydenberg is hopeful here that with restrictions coming off, we can dig ourselves out of this hole somewhat,” Mr Clennell said.

“He says it is time for things like tax reform because we need to get business going again and that needs infrastructure, tax reform, industrial relations reform, changes to skills.”