Australia Now Holds Record For No Recession - 26 Years

Australia Now Holds Record For No Recession - 26 Years

It’s official!

No matter what the doomsayers say and write. Australia now has not had a recession for 26 years — a new world record.

The record was broken when the economy grew by 0.3 per cent in the March quarter, with annual growth to March at 1.7 per cent, official figures released by the Australian Bureau of Statistics show.

No Recession in 26 Years

Business surveys and job advertisements are pointing to further healthy growth in hiring.

The best growth in profits since the global financial crisis and strong demand for services are supporting employment, which the National Australia Bank’s monthly survey suggests is likely to continue rising by about 20,000 positions a month.

The ABS analysis of the underlying trend, which it says is more reliable than the headline result, is consistent with the NAB survey showing the pace of hiring picked up from an average of only 7,000 a month over the first ten months of last year to a healthier 21,700 positions a month since last December.

This is in line with growth in the labour force and is sufficient employment growth to keep unemployment around its current level of 5.7 per cent.

It has now been nearly 26 years — or 103 quarters — since Australia had a technical recession, defined as two consecutive quarters of negative growth.

Australia last recorded two negative quarters of economic growth in March and June 1991, before enjoying 103 quarters without a recession to equal the record set by The Netherlands.

Australia being a resources-rich nation with a long stretch of expansion has been supported by economic reforms in the 1980s and 1990s, such as the floating of our currency, a flexible labour market, financial sector and capital markets deregulation and lower tariffs.

Australia has also benefited from China’s economic growth and hunger for natural resources, which led to an unprecedented mining investment boom and record commodity prices.

Australia is successfully making a transition away from a dependence on mining investment as the boom ends and there is growth in non-resources sectors.

Troy Gunasekera // National Manager

Related Posts

Onsite Managers/Caretakers – The Good, the Bad and the Ugly

Onsite Managers/Caretakers – The Good, the Bad and the Ugly

If you are a property investor who owns a unit, you may well have bought into a development whose Body Corporate engages an Onsite Manager or Caretaker (hereinafter referred to as an OSM). Now some OSM’s are good, and some are bad, and some are outright ugly! If your complex has a good one, breathe a sigh of relief...

🌟 Property Market Update with Clifford Bennett | June 2024 Edition 🌟

🌟 Property Market Update with Clifford Bennett | June 2024 Edition 🌟

Welcome to our latest property market update! In this video, renowned economist Clifford Bennett shares his expert insights on the current trends, challenges, and opportunities in the property market. Whether you're a homeowner, investor, or simply interested in real estate, this update is packed with valuable...

Western Australia leads nation in property investment growth, offering hope for renters

Western Australia leads nation in property investment growth, offering hope for renters

Western Australia has recorded the highest growth rate in property investment of any Australian state over the past year, with investor lending reaching a record $1.15 billion in April 2024, according to the latest ABS figures. Kevin Young, President of Property Club, said that property investment activity in WA has...

Become a Member Today!

Our mission is to help the average Australian learn the property market dynamics and discover the amazing opportunities that exist in real estate.