4 Jun 2020
Australian Economy: Recession
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The GDP (Gross Domestic Product) number is out for the first quarter which is January to March 2020 and it is negative zero point three percent or -0.3%.
This is not unexpected and the likelihood of the second quarter which is the current April to June 2020 to also be a negative number is extremely high.
Two consecutive quarters of negative GDP will mean that the Australian economy will official be in a recession, the first in 29 years.
Click for chart.
While this recession is playing out, financial markets and asset prices have bounced since the 23rd March 2020 low with the Dow Jones Industrial Average (DJI) closing at 26,269 points overnight which represents a 26.0% increase and the Australian All Ordinaries Index (AORD) closing at 6,064 points which represents a 32.8% increase.
Congratulations to all those clients who have taken advantage of this market crash and if you are an Active client that has questions, please call me on 02 9267 2322.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.