Australia warns its economy of shrinking at a fast pace in history in second quarter

As Australia continues to battle to contain the spread of the novel Coronavirus, it warned on July 23 that its economy will shrink at its fastest pace in history during the second quarter while it will see the budget deficit being the biggest since the Second World War.

In order to fight the pandemic, the government here has stumped up tens of billions of dollars, which ravaged the global trade, forcing the shutdown in most places of the country, earlier in the year, damaging the economy.

“The budget deficit would blow out to about 132 billion U.S. dollars – almost a tenth of GDP – in the year to June 30, having hit nearly 62 billion U.S. dollars in the previous 12 months,” said Treasurer Josh Frydenberg adding further that harsh numbers reflect the harsh reality Australia is facing and the economic outlook still remains very much uncertain.

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