Australia Already in Recession as Economic Slump Deepens, CBA Says
By James Glynn
SYDNEY–Australia is back in recession as Covid-19-related lockdowns continue to cripple activity in key states, with the economy expected to show one of its biggest contractions on record in the third quarter, according to the Commonwealth Bank of Australia.
The big mortgage lender on Friday lowered its expectations for national output in the three months through September, forecasting gross domestic product to fall 4.5% from the previous quarter. A few weeks ago, CBA’s forecast was for the economy to contract 2.75%.
“For all intents and purposes the Australian economy is currently in a manufactured recession as we go through another huge negative shock,” said Gareth Aird, head of Australian economics at CBA.
CBA’s downgraded outlook comes as data shows retail sales collapsed in Sydney in July as lockdowns were extended and cases of the Delta…