Australia is out of a recession officially.
New data released by the Australian Bureau of Statistics (ABS) showed that in the September quarter, the Gross Domestic Product or GDP of the nation grew 3.3 percent.
Overall, Australia’s GDP dropped by 3.8 percent in 2020.
Michael Smedes, Head of National Accounts at the ABS, said the recovery is still only partial.
“Following the record 7.0 per cent decline in the June quarter, Australia experienced a partial recovery in the September quarter,” said Mr Smedes.
“As a result, economic activity fell 3.8 per cent through the year to September quarter.”
According to the ABS, much of the recovery was driven by household spending.
“Household spending drove the economy, rising 7.9 per cent due to increased spending on both goods and services,” the ABS said in its release.
“Spending on services rose 9.8 per cent, driven by spending on hotels, cafes and restaurants, health and recreation and culture as containment measures were relaxed.
“The easing of restrictions also increased demand for goods, which rose 5.2 per cent.”
Treasurer Josh Frydenberg said the economic recovery for the nation has begun.
“The Australian economy is coming back. Facing a once-in-a-century pandemic that has caused the greatest economic shock since the Great Depression,” Mr Frydenberg said.
“Australia has performed better on the health and on the economic fronts than nearly any other country in the world.
“Australia’s economic recovery is under way.”