The Australian economy shrank by -1.9% in the third quarter ending in September, in the third quarterly contraction in history, after a growth of about 0.7% in the second quarter, to come in better than expectations that indicated a decline of about -2.7%, which affected the decline in the annual growth rate to 3.9 % of 9.6% compared to September of the year 2020.

This decline in GDP growth reflects the closure that occurred in Australia in the third quarter of New South, Wales and Victoria in the Australian government’s efforts to limit the spread of the Corona virus, which affected household spending.

The quarterly decrease in GDP is considered the third since records began in 1959 (the first decreased by 2% in 1974) and the second (the decline by 2 in the year 2020).

The Australian dollar is trading at 0.7168 levels against the US dollar, up by about 40 points since the beginning of the Asian session and before the opening of European markets.