Has Australia Beaten the Recession?
Coronavirus is the new normal. It’s the legacy of 2020, a tough year in which our lives have been completely changed. But while this year has tested us to our core, it’s laid the foundation that will make our lives easier moving forward.
We’ve got through the worst of it, we can handle the rest of it!
And you know what? It looks like a similar thing has happened with the Australian economy.
A Crisis Like No Other
When the virus first hit back in March, the International Monetary Fund called it a ‘crisis like no other’. Economies went into lockdown along with their people. Global growth was predicted to shrink by 4.9%. No organisation could provide even a glimpse of what recovery would look like, but the World Economic Forum predicted a loss to the global economy of over $12-trillion dollars between 2020 and 2021.
In Australia, we entered our first recession in 28 years.
Australia Bouncing Back?
But, there’s light at the end of the tunnel: it looks like we could be exiting said recession after just six months. That’s what cautiously optimistic statements from leading financial personnel recently would suggest.
Treasury Secretary Dr Steven Kennedy announced to Senators that ‘the recovery from the biggest economic contraction on record is underway’.
Deputy Governor of the RBA Guy Debelle said “At the moment our best guess it looks like the economy probably recorded positive growth rather than negative,” when talking about the September quarter.
As a result consumer confidence is high. In fact the ANZ-Roy Morgan consumer index rose to 99.7 points last week, scaling heights not seen since pre-pandemic times.
We’re not saying we’re out of the woods, but these are encouraging signs.
Credit has to go to the Australian people for locking down with such commitment and containing the spread before it started to overwhelm us. Credit also needs to go to State and Federal Government for taking the necessary containment steps. They also implemented policies that allowed the economy to keep its head above water.
Keep it up, Australia!
If you have any questions as to how you think real estate in Victoria and Australia will be affected by Coronavirus in the months to come, please get in touch with the Ristic Real Estate team. We’re here to help!
