SYDNEY- Australia’s economic growth picked up pace and soared beyond what is expected last quarter. The recovery removed the threat of recession even as bushfires and novel coronavirus contagion brought disruptions to tourism and the travel sector earlier this year.
The risks posed by the COVID-19 urged the Reserve Bank of Australia (RBA) to reduce interest rates to low ground of 0.5% this week. Such scheme was part of a global response to the U.S. Federal Reserve’s decision of emergency policy easing.
Wednesday’s figures showed that the Australian economy expanded by 0.5% in previous quarter, recording its 29th year of growth devoid of recession. However, it stands that the forecast for the current quarter is gloomy due to the fast-paced spread of the novel coronavirus.
Majority of economic analysts expect a gross domestic product growth contraction as travel restrictions from China dragged tourism, education, and the retail sector. Despite this, statistics released on Friday removed recession concerns.