Australia edges towards recession

Quarterly data shows slowest growth in eight years as fears of recession grow.

    The latest data follows a series of interest rate cuts as officials look to prop up the economy [Reuters]

    Australia has seen more than 17 years of continuous economic growth, riding a booming demand for its rich mineral resources from emerging economies such as China.

    But a recent slump in demand for exports such as coal and iron ore has hit hard, with the government pumping billions of dollars into the economy to prevent it from tipping into recession.

    On Tuesday, Australia's central bank slashed its key interest rate for the fourth consecutive time in three months, cutting one percentage point to 4.25 per cent.

    This way bank chiefs hope to divert cash being spent on mortgages into retail spending that will help keep the economy afloat.

    Wednesday's economic data covers a period before the rate cuts began.

    Meanwhile Kevin Rudd, the Australian prime minister, has announced a stimulus package worth US$6.7bn and has said the government will spend more if needed.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    We Are Still Here: A Story from Native Alaska

    We Are Still Here: A Story from Native Alaska

    From Qatar to Alaska, a personal journey exploring what it means to belong when your culture is endangered.