Long-time Chief Executive Officer Ben Silbermann of Pinterest would step down, handing over the reins of the social media platform to Google...

Stock Market

Google executive to take over as a new CEO of Pinterest

Top accounting firm Ernst & Young has been slammed with a record $100 million fine from the US government...

Stock Market

Accounting firm gets 100 million fine for faulty regulations

The Indian rupee slipped into a fresh low today and extended losses against the US dollar.

Forex

The rupee tumbled to a new low against the dollar in the midst of an increase in crude oil price

Wall Street saw a sharp fall at its closing in a broad sell-off. Consumers' worries over recession have sparked up...

Stock Market

Wall Street Lose Balance after recession strikes growth fear among consumers’

Soaring inflation may be pushing the US economy into a deep recession. Last week's 0.75% interest rate hike by the Federal Reserve...

Stock Market

Inflation ringing the recession bell - Mohammed Shaheen

Economy

31 Aug 2021

Australia’s Increased Government Spending May Help Avoid Recession

The Index Today

The government of Australia spent heavily on its infrastructure during the June quarter, providing a steady boost to the overall economic growth of the country. The increased spending may have played a major role in averting a recession.

According to analysts, the economy may shrink again due to lockdowns and growing covid cases in this quarter. The Australian Bureau of Statistics released data on Tuesday showing that public spending has jumped from 2.5% to A$135.7 billion during the June quarter.

Consumer spending and business investments have shown prominent growth in the last two quarters, additional demand for imports and inventories also helped boost the overall GDP.

Net exports accounted for a whole percentage point of growth as the demand for exports went down. The country’s current account deficit has also increased to A$20.5 billion. GDP numbers are expected to be notable as lockdowns are being implemented all across Sydney, Canberra, and Melbourne.

According to chief Australia economist of BIS Oxford Economics, “around 60% of the population are currently in lookdown and the economy is likely to contract by well over 3% this quarter.”

But on the other hand, high vaccination rates may help the economy recover quickly as restrictions may begin to ease by the end of the year. Prime Minister Scott Morrison plans to reduce restrictions once 70% of the population has been vaccinated.

Clay pottery with table linens