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Australia’s GDP recovery versus the world

Published: (Updated: ) in Australian News by .

Treasurer Josh Frydenberg said that Australia had handled the pandemic – on both an economic and a health level – better than almost any country in the world.

Australia is technically no longer in a recession, having recorded a September quarter of positive growth.

While the headlines are good, the recovery is not as official: unemployment remains at seven per cent and many households are clamping down on daily budgets.

During his address, Treasurer Josh Frydenberg said that Australia had handled the pandemic – on both an economic and a health level – better than almost any country in the world.

READ MORE: Australia 'technically' out of a recession

Treasurer Josh Frydenberg addresses the media during a doorstop interview in the press gallery at Parliament House in Canberra on  Monday 19 October 2020.

"The Australian economy is coming back. Facing a once-in-a-century pandemic that has caused the greatest economic shock since the Great Depression," Mr Frydenberg said.

"Australia has performed better on the health and on the economic fronts than nearly any other country in the world."

Here's what we know about how other countries are doing:

READ MORE: What is a recession? How will it affect ordinary Australians?

AUSTRALIA

HEALTH: To date, Australia has recorded 27,912 positive COVID cases – one of the lowest totals in the world.

Of those, 908 people have died. More than 25,000 people have recovered.

ECONOMY: Australia is no longer in a recession, after posting a 3.3 per cent increase in the third quarter.

In the second quarter, Australia recorded a seven per cent drop – marking the second consecutive quarter in which GDP dropped and signalling the start of a technical recession.

READ MORE: RBA keeps interest rates on hold at record-low 0.1 per cent

USA

HEALTH: The US has recorded more than 13.7 million positive COVID-19 cases, the most of any country in the world according to John Hopkins University.

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It also leads the death toll count, having recorded 270,532 fatalities to the virus.

ECONOMY: The US entered a recession after posting a moderate fall in GDP during the first quarter, and then posting a 31.4 per cent decrease in GDP in the second.

Like Australia, the US is no longer in a recession after posting a remarkable 33.1 per cent change in GDP for the third quarter of 2020.

READ MORE: Coronavirus was in US in mid-December last year, study suggests

UK

HEALTH: Using the same John Hopkins data, the United Kingdom has recorded the seventh highest number of positive cases of COVID-19.

There have been more than 1.6 million cases and 59,148 deaths.

ECONOMY: According to the UK's official statistics, GDP fell 19.8 per cent in the second quarter of 2020.

That fall was amongst the biggest of any major economy. In the third quarter it too rose sharply, gaining 15.5 per cent.

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CHINA

HEALTH: Again using John Hopkins data, China recorded 92,993 cases of COVID-19.

Of those, just 4,743 people were reported as dying because of the virus.

ECONOMY: According to China's National Bureau of Statistics, China's economy shrunk by 6.8 per cent in the first quarter of 2020, before rebounding to record 3.2 per cent growth in the second.

In the third quarter China cemented gains, posting a 4.9 per cent growth in the third.

Medical personnel work in the intensive care unit (ICU) of a hospital designated for COVID-19 patients in Wuhan in central China's Hubei province Monday, Feb. 24, 2020. There are still over 9,000 COVID-19 patients in critical conditions in China by Monday.- PHOTOGRAPH BY Feature China / Barcroft Studios / Future Publishing (Photo credit should read Feature China/Barcroft Media via Getty Images)

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NEW ZEALAND

HEALTH: New Zealand has, to date, recorded an astonishingly low number of just 2,060 total cases of COVID-19.

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Of those, just 25 people died as a result of the virus. Aside from some Polynesian and African nations, it is one of the lowest totals in the world.

ECONOMY: According to Stats NZ, in the first quarter of 2020 New Zealand recorded a GDP drop of -1.4 per cent.

That accelerated in the second, with the country recording a 12.2 per cent drop in GDP. Third quarter results have not been announced yet.

READ MORE: NZ flights land in Melbourne as Victoria joins travel bubble

INDIA

HEALTH: Aside from the US, India has recorded the second highest number of total cases with more than 9.4 million. Of those, 137,621 people have died.

ECONOMY: Official data shows that India's GDP shrunk by 7.5 per cent in the September quarter, after contracting a whopping 24 per cent in the first quarter.

India is now in a technical recession.

READ MORE: India suffers first recession in decades

ITALY

HEALTH: Hit hard by tourism transmission of the disease, Italy has recorded more than 1.6 million total cases of COVID-19. Of those, more than 56,000 people have died.

ECONOMY: Italy's GDP followed a similar pattern of "two quarters down, one up".

In the first quarter of 2020 its GDP fell by 5.5 per cent, following by a bigger 13 per cent drop in the second. In the third September quarter they made a 15.9 per cent recovery, officially boosting them out of recession.

Rome, Italy

READ MORE: Italian hospitals face breaking point in autumn virus surge

You can get up-to-date information from the Federal Government's Coronavirus Australia app, available on the App StoreGoogle Play and the Government's WhatsApp channel.

Beyond Blue's Coronavirus Mental Wellbeing Support Service is a 24/7 service free of charge to all Australians. Visit the site here or call 1800512348

For coronavirus breaking news alerts and livestreams straight to your smartphone sign up to the 9News app and set notifications to on at the App Store or Google Play.

Source: 9News https://www.9news.com.au/world/australia-technically-not-in-a-recession-how-gdp-recovery-compares-to-the-rest-of-the-world/b1e11322-1d9b-42d0-8081-5d9f947b5181

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