How did Australia escape recession?

Australia is the only major Western economy to have avoided recession, defined as two successive quarters of negative growth. GDP accelerated in the second quarter, notching up a rise of 0.6%, three times higher than expected. This follows a 0.4% increase between January and March, taking growth out of negative territory after just one quarter.

What the commentators said

Australia has also been shielded by a "non-dysfunctional banking system" that steered clear of risk.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Most important of all are its trading links with China. "As China's preferred supplier of rocks and crops" it has "piggybacked off a stimulus nine times larger than its own". With inflation unlikely to stay below target for long as the economy strengthens, said Capital Economics, Australia could hike rates by the end of the year.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.