Logo of Phnom Penh Post newspaper Phnom Penh Post - Oz recession adds to virus woes

Oz recession adds to virus woes

Content image - Phnom Penh Post
A recent outbreak in Melbourne forced a new lockdown covering five million people that has dragged on any economic recovery. AFP

Oz recession adds to virus woes

Australia has fallen into recession for the first time in three decades and Brazil’s economy shrank by almost 10 per cent because of the coronavirus, leaving China as the only major nation still recording economic growth during the pandemic.

A raft of bleak data from India to Europe in recent days has laid bare the toll from lockdowns as nations try to keep a lid on an illness that has killed more than 850,000 people and infected over 25 million.

The challenges were further highlighted on Wednesday when Australia announced a record contraction of seven per cent despite authorities providing billions of dollars in support to struggling firms.

Treasurer Josh Frydenberg said: “Today’s national accounts confirm the devastating impact on the Australian economy from Covid-19.

“Our record run of 28 consecutive years of economic growth has now officially come to an end. The cause – a once-in-a-century pandemic.”

Australia has confirmed almost 26,000 cases of coronavirus and 663 deaths, but had successfully contained the illness in most of the country by July.

A recent outbreak in Melbourne, however, forced a new lockdown covering five million people that has dragged on any economic recovery.

Shutdowns have taken a toll on livelihoods across the globe as business revenues plunge and millions are forced out of work.

New Delhi reported on Monday that growth in Asia’s third-largest economy suffered a historic 23.9 per cent decline between April and June as the manufacturing sector was battered by restrictions on businesses.

In the Philippines, meanwhile, there has been a resurgence of barter trade as cash incomes dry up, with people flocking to Facebook groups to exchange everyday possessions for food.

Brazil’s economy, the biggest in Latin America, contracted by a record 9.7 per cent in the second quarter of the year, plunging the nation into a virus-induced recession.

“GDP [gross domestic product] is now at the same level as in late 2009, at the height of the global financial crisis,” the Brazilian Institute of Geography and Statistics said.

The drop in the April-June period was the biggest for any quarter since the current system of records began in 1996, it added.

The only major economy to have avoided a recession is China, thanks to strict lockdowns that have seen Covid-19 all but disappear in the country.

In the second quarter the Chinese economy rebounded by 11.5 per cent, having fallen by 10 per cent in the first quarter.

In Europe, where GDP plunged 12.1 per cent in the three months to June, fears are growing of more lockdowns and disruption this autumn and winter as the virus refuses to die.


  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • ‘Beware of WhatsApp fraudsters’

    The Ministry of Posts and Telecommunications warned members of the public who use WhatsApp to vigilantly guard against a new trick employed by hackers that involves the use of six-digit codes sent to potential victims via the popular messaging app. The ministry said hackers could