Australia faces ‘sharp recession’ warning as Middle East conflict drives oil prices
Australia's economy may suffer a sharp recession due to the Middle East conflict driving oil prices up. The country's GDP could contract by 0.3% in the June quarter and 0.8% in the September quarter if the conflict continues.
Australia's economy is at risk of a sharp recession due to the Middle East conflict. The conflict has driven oil prices up, adding inflationary pressures to the economy. Oxford Economics predicts a global downturn if the conflict extends for another two months. Australia's GDP could contract by 0.3% in the June quarter and 0.8% in the September quarter. The government has announced measures to ease the pain, including removing the fuel excise and foregoing increased GST revenue on fuel transactions. The Australian Treasurer is aware of the risk and is war gaming a potential recession plan.
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