RBA: Australia is in recession
Australia has become the latest country to slip into recession, the Reserve Bank’s governor Glenn Stevens has confirmed.
In a statement to Australian Institute of Company Directors, the RBA chief said that there is "no precedent for avoiding [a recession] of this size".
His comments came after prime minister Kevin Rudd eventually crumbled and admitted that the country will be pulled into negative growth by the global economic crisis.
A recession is generally defined as six straight months of reduced economic growth and is commonly spurred on by unemployment, falling property prices and reduced credit card and cash spending.
Speaking to an audience in Perth, Mr Rudd asked: "What do we do together to cushion the impact of this recession on local families, local workers?"
Mr Rudd had previously held firm in his belief that Australia might be able to dodge the worst of the downturn and his two cash bonuses have formed part of that plan.
He had hoped that people would go out and spend a dollar for their country, helping to keep people in their jobs.