We could (but probably won’t) go into recession today

If the economy goes backwards for the second quarter in a row today, we’re technically in recession.

The Federal Government will be watching closely as the Australian Bureau of Statistics (ABS) releases its gross domestic product (GDP) figures later today.

Last time around, they showed Australia’s economy had gone backwards. If that happens for the second quarter in a row, we’ll be in a technical recession.

What does GDP measure?

GDP measures most of the goods produced and services performed across the formal economy.

So it’s counting the cost of the coffee you buy and the wages of the barista who made it.

It’s quite the sum: the ABS is adding together company profits, wages, exports, imports, investment, construction and much more. Basically, almost everything.

What it doesn’t count, and a big flaw in GDP, is all the work done informally in the home or by volunteers.

Source: We could (but probably won’t) go into recession today – ABC News (Australian Broadcasting Corporation)