The economy of Australia, which was previously called one of the countries that benefited from the coronavirus, began to have problems. This was stated by Finance Minister Josh Frydenberg, quoted by CNBC.
“Our record period of continuous economic growth over the past 28 years has come to an end,” the official said, adding that the country has officially entered a recession.
According to him, the main reason for the decline is due to restrictions imposed to combat the spread of the coronavirus. Frydenberg called the current difficulties unprecedented for Australia and its residents, but stressed that there is hope for a way out of the crisis.
At the end of the second quarter, Australia’s GDP fell by 5.9 percent, while HSBC Bank forecast 7.5 percent.
Previously, Australia — along with New Zealand and South Korea — was called a country that benefited from the coronavirus pandemic due to effective and timely measures taken by the government, which attracted international investors and encouraged them to buy government debt.
The result was the strengthening of the national currency — the Australian dollar. The thesis is ambiguous, since a strong currency plays against exporters, reducing the competitiveness of their products. However, economists who hold this view noted that countries were able to attract additional international investment in this way.