Australia heading for recession after economy contracts

first_img“The economic impact will be severe. Far more severe than what we have seen today,” Frydenberg said.Authorities ordered numerous businesses shut and closed the country’s international borders to stem the spread of COVID-19, costing the economy billions of dollars but achieving success in containing the virus.Frydenberg said the negative March quarter “compared very well” to results in countries including China, France and Britain, showing the Australian economy’s “remarkable resilience”.”We were on the edge of the cliff. What we were facing was an economist’s version of Armageddon,” he said. Australia is heading for its first recession in nearly three decades after the economy shrunk in the January-March quarter, with a “far more severe” reading expected in the next three months as the effects of the virus shutdown bite.The 0.3 percent contraction was the first quarterly drop since 2009 during the global financial crisis and came as the lockdown exacerbated the impact of a prolonged drought and massive bushfires.And while it was smaller than the forecast 0.4 percent drop, Treasurer Josh Frydenberg said Australia was now on track to enter its first recession since 1991 “on the basis of the advice that I have from the Treasury Department about where the June quarter is expected to be”. “We have avoided the economic fate, and the health fate, of other nations because of the measures that we have taken as a nation.”The government has effectively bankrolled swathes of the economy — subsidizing wages and urging rent deferrals in order to keep businesses on life support until normal life returns.Millions of Australians have lost their jobs or seen hours slashed, but officials hope a three-stage approach to lifting virus restrictions will help restore the economy.National Australia Bank’s Kaixin Owyong said the economy would likely shrink 8.4 percent in the next three months.But she added that the lifting of restrictions earlier than expected “points to economic recovery beginning in the third quarter, with high-frequency indicators… showing spending is picking up as restrictions are eased”.She did, however, warn that a full rebound was some time off as borders were still closed, which will continue to hit trade.”Full recovery will also require confidence in health and economic outcomes to be restored, where households may remain cautious for some time given record job losses and with the labor market historically lagging recovery in activity,” she added. Australia has recorded about 7,200 cases and 102 deaths from coronavirus, with many regions now regularly reporting zero new daily cases.center_img Topics :last_img read more

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Gold Coast penthouse sells for seven figure sum

first_imgCook in style with an ocean view. The Italian-inspired penthouse sold for $2.215 million at auction this week.A STUNNING European-inspired Main Beach penthouse sold to a Brisbane-based buyer under the hammer this week for $2.215 million.It was the second highest sale in the state, CoreLogic records show.The property, in the Spinnaker building on Main Beach Pde, had been on the market since February with different agencies.The penthouse from above.Tolemy Stevens of Harcourts Coastal took the property to auction where it attracted five registered bidders. He said the sale came down to an “aggressive marketing campaign”.“There were more than 50 inspections over four weeks and the auction was successful to the delight of the sellers,” he said.“The buyer was from Brisbane and will be using the lovely penthouse as a private holiday home for his family.”More from news02:37Purchasers snap up every residence in the $40 million Siarn Palm Beach North5 hours ago02:37International architect Desmond Brooks selling luxury beach villa1 day agoIt has plenty of space to entertain.The apartment was home to Italian sisters, Giulia Ponticello and Josephine Rizzo, who inherited it from their parents.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:45Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:45 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Trackdefault, selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Summer Dream Home: Currumbin01:45 Related videos 01:45Summer Dream Home: Currumbin01:34Paradise for sale…01:16Dream home: Broadbeach Waters01:33Dream Home: New Farm01:36Dream Home: Brookfield01:00Mermaid BeachWith two kitchens, a wet bar and multiple formal lounge rooms, the penthouse oozes Italian luxury across three levels.The property was bought in 1994 but Mrs Ponticello said the style all started with her parents’ love affair with classic Italian furniture.The bedroom is just as glamorous as the living areas.“It was just an ordinary unit design when my parents originally bought it,” she told the Bulletin earlier this year. “It all started with the Silik-style furniture, which my parents imported from Italy. My father is from Sicily and he was fond of the traditional classical style.”What a view- the ocean from almost every room.The features include black granite kitchen benchtops, Victorian-style tiled floors and glass chandeliers which add true a touch of luxury.The penthouse has columns with gold-leaf style finishes and a winding staircase which leads up to three ensuites bedrooms and two living rooms.The rooftop level, which has 360 views, features an impressive St Peter’s Basilica style dome above the dining table which lets in streams of filtered light.Fancy a bite to eat at this dining room table?last_img read more

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