2 Sep 2021
Indicators: United States of America
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
A economic recession in Australia is officially defined as two consecutive quarters or more of GDP (Gross Domestic Product) contraction.
GDP rose 0.7% for June quarter which reflected the continued easing of COVID-19 restrictions and the recovery in the labour market. The current September quarter however is likely to be negative with both NSW and Victoria in protected COVID-19 pandemic lockdowns.
While it is bad economic news for Australia the United States of America (USA) is in the complete opposite position because they do not believe in lockdowns as evidenced by the fact that the delta strain of COVID-19 is reeking havoc but businesses are still trading.
The attached chart indicates no recession for the USA on the horizon which is good news for business and good news for investors.
Click for chart.
The economic bumps, twists and turns just keep on coming.
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.
