With a record plunge in output, Australia entered its first recession in 29 years last quarter. Huge public support payments resulted in an increase in both corporate profits and household income and meant that the household saving rate surged to levels last seen in the 1970s. Support payments are now being scaled back but households have plenty of scope to increase spending. Still, we only expect GDP to return to pre-virus levels by the end of next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services