Australia’s economy bounces back

Australia’s economy endured its first recession in 29 years in the first half of 2020. But things are now looking up.

Tractor in a vineyard
China has imposed restrictions on Australian wine imports
(Image credit: © GREG WOOD/AFP via Getty Images)

Prolonged lockdowns, a trade war and the first recession in a generation have made 2020 an uncharacteristically gloomy year down under. Australia’s economy endured its first recession in 29 years in the first half. Yet things are looking up. A consumer-led rebound drove a 3.3% GDP gain in the third quarter, the biggest quarterly jump since 1976. Aggressive suppression of the virus and fiscal support mean that consumers’ sentiment is now at a ten-year high, says Swati Pandey for Reuters.

A worsening diplomatic and trade dispute has sparked debate about Australia’s economic dependence on China. Beijing has slapped tariffs and other restrictions on Australian wine, wheat, barley, beef and lobster exports among others this year. This week brought media reports that Australian coal imports are now being heavily restricted by China.

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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.