Jakarta, CNBC Indonesia– A number of countries confirm recession. Latest, quarterly, South Korea (South Korea) recorded negative growth for two consecutive quarters in one year.
But the recessionary ghost seems to be haunting and ready to attack a number of other countries. On Thursday (7/23/2020), Australia signaled a recession might strike the continent.
The Australian economy is expected to experience the deepest contraction in history in the second quarter of 2020. While the budget deficit will be the largest since World War II.
Officials said GDP forecast a 7% contraction in April-June. This will push the country into recession for the first time in three decades.
Recession is defined as the contraction of a country’s economy two consecutive quarters in one year. Previously, in the 2020 quarter I the Australian economy was minus 0.3%.
The budget deficit also jumped to Aus $ 185 (US $ 132 billion), almost one tenth of GDP in the fiscal year to 30 June 2021. Whereas Australia recorded a budget deficit of Aus $ 86 billion in the previous 12 months.
“These rough numbers reflect the harsh reality we face,” Australian Finance Minister Josh Frydenberg was quoted as saying AFP.
“The economic outlook is very uncertain.”
Previously, there were a number of countries in the global economic power that went into recession. Besides South Korea, other countries such as Singapore, Japan, Germany, France also experienced this economic downturn.
Covid-19 has damaged the economies of a number of countries because of the strict lockdown. In Australia alone, lockdown was carried out in Victoria, where Melbourne recorded the highest Covid-19 case in the country.
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