Australia on brink of recession
Australia is well on the way to a recession, with a leading index of economic activity falling to its lowest level in almost 20 years.
The Westpac-Melbourne Institute index shows the annualised growth rate fell to -3.1% in January, from an already bleak -1.2% in December and far below the 4.5% registered last July.
Westpac Senior Economist Matthew Hassan says this is the weakest result in the index – which measures economic growth – since 1990.
“The leading index is now in deeply negative territory consistent with contracting economic activity,” he said. “There are only four occasions in the 49-year history of the index in which its growth rate has fallen below the current [level]. Each of these was followed by recessions in the Australian economy.”
The Westpac-Melbourne Institute index shows the annualised growth rate fell to -3.1% in January, from an already bleak -1.2% in December and far below the 4.5% registered last July.
Westpac Senior Economist Matthew Hassan says this is the weakest result in the index – which measures economic growth – since 1990.
“The leading index is now in deeply negative territory consistent with contracting economic activity,” he said. “There are only four occasions in the 49-year history of the index in which its growth rate has fallen below the current [level]. Each of these was followed by recessions in the Australian economy.”