Australia is expected to enter the deepest recession ever in the first half of this year as a result of the corona crisis. The Australian central bank announced this. The Reserve Bank of Australia (RBA) fears a 10 percent contraction in the first six months of this year. A fall of 6 percent is predicted for the whole of 2020.
It would be the first recession in Australia in three decades. To tackle the virus outbreak, the Australian government has closed its borders and introduced strict restrictive measures to the public. Many companies are closed and staff are being massively expelled. Unemployment is likely to peak at 10 percent. Plans are now underway to relax the measures.
To mitigate the negative impact of the crisis on the economy, the RBA has cut interest rates to its lowest ever level and announced a series of support measures.