Economy of Australia dives into first recession in nearly 30 years

The economy of Australia has dived into its first recession in nearly 30 years, as it suffers the economic fallout from the novel coronavirus.

According to the details, Gross domestic product (GDP) shrunk 7% in the April-to-June quarter compared to the previous three months.

An economy is considered to be in recession if it sees two consecutive quarters of negative growth.

Hours worked fell almost 10 percent while cash payments of social benefits rose more than 40 percent, both records, while imports and exports were also down.

The country was already reeling from a prolonged drought and massive bushfires that rattled the economy before the disease struck.

Australia has confirmed almost 26,000 cases of the disease and 663 deaths, in a population of 25 million, and had successfully contained it in most of the country by July.

But an outbreak in Melbourne and its surroundings since then forced a new lockdown of five million people in the country’s second-largest city, dragging on the recovery.