June Quarter National Accounts breaks through recession record
The national accounts figures confirm the devastating impact of COVID -19 on the Australian economy which currently is in recession after recording the largest quarterly fall on record of 7 per cent in the June 2020 quarter.
Today's figures came hot on the heels of a 0.3 per cent fall in the previous quarter.
Record government payments to businesses and households, including the signature $100 billion plus JobKeeper program, helped cushion the COVID -19 impact.
The annual economic contraction was 6.3 per cent. Gross Domestic Product (GDP) per capita was down by 7.2 per cent for the quarter and 7.4 per cent for the year. Only the financial and insurance services sector contributed to growth during the quarter.
Household final expenditure collapsed by a record 12.1 per cent during the quarter as the household saving ratio climbed to 19.8 per cent, the highest rate since June 1974.
General government expenditure, public capital expenditure and net trade made positive contributions to growth.
The construction sector declined by 8.2 per cent during the quarter and by 10.3 per cent for the year to June. Manufacturing retracted by 9.6 per cent during the June quarter and by 6.1 per cent for the year to June.
Accommodation and food services was the hardest hit sector, declining by 39 per cent in the June quarter and 43.3 per cent for the year to June.
The downturn was expected; now the focus turns to the economic recovery phase.