Australia’s economy is about to meet its delayed day of reckoning

Fallout from the coronavirus outbreak looks set to end Australia's record-breaking streak of 28 years without a recession.

GDP heads down Down Under: a 28-year growth streak is ending © iStockphoto
(Image credit: Melbourne © Getty Images/iStockphoto)

Australia has gone over the coronavirus cliff, says Katharine Murphy in The Guardian. A surge in new cases has prodded the government into action, with Prime Minister Scott Morrison shutting down non-essential services such as cinemas and gyms this week.

The sudden stop to large swathes of the consumer economy has weighed on the stockmarket. The benchmark S&P/ASX 200 is down almost one-third over the past month. The Reserve Bank of Australia, the country’s central bank, has stepped in with emergency monetary support, slashing interest rates to a record low of 0.25% and launching open-ended quantitative easing. Canberra has already announced a A$17.6bn (£8.9bn) relief package, equivalent to about 1% of GDP, with more to follow.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.