- The global economic recovery continues, however growth is uneven across regions and there were signs of a loss of momentum in Europe through the September quarter.
- US President Trump stepped up his trade rhetoric ahead of the presidential election with talk of a “decoupling” from the Chinese economy amid a widening trade deficit.
- China is on track to be the first country to exit the pandemic and is the only G20 country with a positive GDP result, recording 3.2% year-on‐year for the June quarter.
- The Reserve Bank of Australia kept rates on hold at 0.25% at its September meeting and extended the Term Funding Facility until the end of June 2021.
- From 28 September, Australia’s JobKeeper payments will fall from $1500 per fortnight to $1200, and $750 for those working less than 20 hours per week.
The Australian economy officially entered a recession for the first time since 1991 as the national accounts showed GDP fell 7.0% in the June quarter, following a 0.3% fall in the March quarter.
The COVID‐19 pandemic continues to spread, with data from the World Health Organisation showing confirmed cases were above 27 million at the end of August and rising. Globally, the economic recovery continues following severe contractions in the first half of 2020, but growth is uneven across countries and regions, with fears of a larger second wave dampening hopes of a sustained rebound.
Key indicators point to a strong rebound in economic activity, but the outlook remains uncertain with additional aid packages tied up with Congress, which is impacting on consumer sentiment.
Key economic indicators suggest that Europe’s recovery is losing momentum through the September quarter. Fears of resurgent COVID‐19 infection rates, most notably in Spain and Italy, is leading to greater caution from consumers, while the spectre of deflation is re‐emerging for the first time since the euro crisis.
With only sporadic outbreaks across the country, China is on track to be the first country to emerge from the COVID‐19 crisis, and the only G20 country to post a positive GDP result in the June quarter.
Japan’s GDP fell 7.9% in the June quarter, slightly less than the ‐8.1% expected, marking the third consecutive quarter of contraction and the steepest on record following impacts from COVID‐19.