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How australia s recession impacts your finances and banking

How Australia's recession impacts your finances and banking

We’ve all seen the headlines: Australia is now facing its first recession in nearly 30 years. The numbers support the claim.Australian Bureau of Statistics data released this week shows the nation’s economy contracted by 7% in the June quarter, the sharpest quarterly fall in the Gross Domestic Product (GDP) on record. It follows another GDP drop of 0.3% in the March quarter. This means the country has now recorded two consecutive quarters of negative growth - the technical definition of a recession, which Australia hasn’t experienced since 1991. Treasurer Josh Frydenberg said these numbers “confirm the devastating impacts on the Australian economy from COVID-19.” Many people are out of work, while others have seen their pay cheques cut. Spending is down too, with a number of recent surveys revealing most Australians are pulling the reins in on discretionary purchases and focusing on savings instead. So, what’s next?

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