CANBERRA: Australia’s economy shrank for the first time in more than five years in the third quarter amid steep falls in business investment, housing construction and public spending. The weak performance was the largest economic contraction since the global financial crisis, prompting concerns over Australia’s remarkable 25-year run of recession-free growth.
Figures published on Wednesday showed quarter-on-quarter gross domestic product fell by 0.5 per cent in the three months to the end of September, significantly below consensus estimates that had already been hastily redrawn by analysts following a raft of disappointing data over recent days. On an annual basis GDP grew 1.8 per cent, which is below long-term trends for an economy enjoying the world’s longest recession-free period.
Scott Morrison, Australia’s treasurer, said the disappointing performance highlighted the need for opposition parties to work with the government to pass reforms to drive business investment. “It’s time to join the national economic plan for jobs and growth,” he said. The Australian dollar fell 0.5 per cent to 74.2 cents against the US dollar following the data’s release.
