Australia bounces from recession as market develops 3.3percent

The Sydney city centre skyline is seen as the state of New South Wales continues to report low numbers for new daily cases of the coronavirus disease (COVID-19) in Sydney, Australia, August 16, 2020. Picture taken August 16, 2020. REUTERS/Loren Elliott

WELLINGTON, New Zealand — Australia’s economy grew by 3.3percent in the next quarter, starting from the first recession in almost 3 years since it recovered from pandemic-related shocks, based on statistics published Wednesday.

Treasurer Josh Frydenberg told colleagues that the nation still has a great deal of ground to make up against the coronavirus downturn.

“Australia’s downturn might be over, but Australia’s financial recovery isn’t,” he explained.

Regardless of the most recent quarterly increase, the market contracted at a 3.8% annual rate. That is after GDP dropped by 0.3percent in the first quarter and then by a record 7 percent in the next quarter.

“However, the Australian market has shown its remarkable strength, and Australia is also placed as any other country on Earth,” Frydenberg explained. “Now’s federal accounts represent a significant step forward in Australia’s financial recovery.”

Earlier this past year, Australia had managed to prevent a recession for 28 decades. The market grew even throughout the global financial crisis because of solid demand for Australia’s mineral exports along with a strong domestic industry.

Today Australia faces a brand new commerce obstacle amid rocky relations with China, its main trading partner.

Frydenberg reported the problem with China is”quite serious” but his administration is focusing on striking deals with other nations in Asia and beyond.

“We’ve got good products, and we’ve got excellent solutions, and we’ve got great resource businesses, and I am very optimistic about the chances for our exporters across the planet,” he explained.

Australia’s relationship with China worsened this week following having a Chinese official tweeted that a bogus picture of a smiling Australian soldier carrying a bloodied knife into a kid’s throat.

However, China hasn’t backed down.

Tensions have been growing this season because the Australian authorities called for an independent inquiry into the roots of this pandemic.