Australia’s economy goes back to pre-pandemic levels as consumers, businesses spend

Australia’s economy hits pre-pandemic levels as consumers and businesses spent lavishly, lifting the economy from the coronavirus drag, causing the country’s first recession in thirty years.

The economy of the Land Down Under grew by 1.8% in the three months to March as indicated in the data released by the Australian Bureau of Statistics (ABS) on Wednesday.

It surpassed the 1.5% growth forecast following an upwardly revised 3.2% gain in the fourth quarter.

The two consecutive quarterly growth lifted annual output to 1.1% to A$525.7 billion ($408.05 billion), far from last year’s recession low of $468.3 billion.

The stronger-than-expected figures propelled Australia’s benchmark share index to record highs while supporting the local dollar near a one-week high.

The Reserve Bank of Australia (RBA) has welcomed recent strength in data but has reiterated it will not raise the cash rate from its record low of 0.1% until inflation was sustainably within its 2-3% target band.