Australia's economy rose by 3.3 percent in the third quarter, recuperating from its first recession in almost three decades as it rebounded from pandemic-related shocks, as indicated by figures released on Wednesday.
According to treasurer Josh Frydenberg, the nation still has a large amount of groundwork to compensate for the COVID-19 downturn.
Australia Rebounds Out of Recession
It is the first recession in Australia in 30 years. Official figures on Wednesday displayed the economy's rise in July-September compared to the novel coronavirus-hit previous quarter.
With the local transmission of the coronavirus largely under reigns, official data displayed businesses have begun to bounce back, and consumer spending has been propelled.
The economy might have rebounded sharply, but Australia's top central banker cautioned monetary policy would stay accommodative for quite some time.
Information released earlier displayed the A$2 trillion ($1.5 trillion) economy swelled by a larger than expected 3.3 percent in the September quarter after a 7 percent dwindling in June as the nation largely got COVID-19 under reigns.
The expansion beat the market consensus of a 2.6 percent growth. It was the first quarterly expansion since 2019's fourth quarter and the most swift since 1976's March quarter as the economic activity operated again in the wake of the global health crisis, reported Trading Economics.
According to Frydenberg, "Australia's recession may be over, but Australia's economic recovery is not," reported AP.
Notwithstanding the most recent quarterly rise, the economy dwindled at a 3.8 percent yearly pace.
The Australian Bureau of Statistics stated that household spending was the massive driving force behind the economic bounce. It grew 7.9 percent in contrast to the previous quarter.
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Also, according to Frydenberg, the figures "can give Australians cause for optimism and hope," declaring that the nation "has performed better on the health and on the economic fronts than nearly any other country in the world," reported Barron's.
Meanwhile, central bank governor Philip Lowe cautioned positive economic signals masked underlying problems. Lowe told lawmakers, "These figures... cannot hide the reality that the recovery will be uneven and bumpy and that it will be drawn-out. Some parts of the economy are doing quite well, but others are in considerable difficulty."
The recovery was led by household spending, which increased 7.9 percent, driven by large fiscal and monetary stimulus since March 2020.
The Australian dollar shortly reached a day's high of $0.7389.
Household consumption rose the most on record by 7.9 percent after a 12.5 percent downturn in Quarter 2. Government spending rose further (1.4 percent vs. 3 percent), and gross fixed capital formation diminished much less (-0.1 percent vs. -4.9 percent).
Inventories fell, driven by wholesale trade and mining.
Frydenberg remarked the Australian economy had exhibited significant resilience, and it is as well-positioned as any other country. He added recent national accounts depict a major bolstering in Australia's economic recuperation.
The nation's central bank has foreseen the economy would not return to pre-pandemic levels until the end of next year.
Australia's economy has not yet fully recuperated from the coronavirus-driven recession, displaying a 3.8-percent downfall from 2020 to September.
Exports fell (-3.2 percent vs. -7.5 percent), and imports grew (6.5 percent vs. -12.8 percent).
On the subject of production, most sectors have inflated, excluding forestry, agriculture, mining, and fishing.
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