Canberra May 3 : Hit by the early outbreak of Covid-19 and aftermath of the Bushfire of Australia the country for the first time in three decades hits the recession. Australian Bureau of Statistics released on Wednesday showed the economy shrank to a GDP of 0.3 per cent in the March quarter. Treasurer Josh Frydenberg says '' Australia is currently in a recession after the nation's economy shrunk in March and forecasts show a "severe impact" over the June quarter''.
BBC reported that the recent economic scenario has surfaced even after the government and central bank of Australia took several measures to support the shrinking economy. In March the Reserve Bank of Australia cut its main interest rate to a record low of 0.25%. The central bank also launched an unlimited bond buying programme. While the central bank kept the cost of borrowing on hold at its meeting on Tuesday, Governor Philip Lowe said the country was facing the toughest conditions since the Great Depression. (UNI)