Australia’s economy dipped in the third quarter of 2016, ending a five-year history of uninterrupted growth and triggering whispers that tougher times might be ahead. But the last time that Australia suffered through a recession was 1991, marking more than 25 years of economic prosperity that even weathered the major global downturn that struck in 2008. No other country has managed such stellar results, according to the International Monetary Fund.
As long as China keeps spending:
- Recessions are generally defined as two consecutive quarters of negative economic growth.
- For much of the past quarter century, Australia's resource-rich economy has thrived, powered mainly by China's seemingly insatiable appetite for Australian raw materials.
- "A recession in the next few years seems unlikely" unless there's a crash in China's economy or Australia's housing market, predicted Paul Dales, chief economist for Australia and New Zealand at Capital Economics.