Small business’ down under, going under. What to expect from Australia’s first recession in 29 years.

By Taylor Stott

Australia is in recession for the first time in 29 years due to the economic crisis caused by the Coronavirus pandemic. As our nation works to repair our economy attention has been drawn to our countries small business’ and what the future looks like for these micro enterprises.

Josh Frydenberg, treasurer of Australia dressed the public earlier this week to confirm the recession. Stating that despite the shock news, the resilience of Australians will keep us afloat.

Key Points

• Gross domestic product has reduced by seven percent in the June quarter.
• This is the largest contraction on record in Australia.
• It is three times larger than the previous biggest contraction of two percent in 1974.

"The Australian economy fell 7.0% in the June quarter 2020, the largest fall in Gross Domestic Product since quarterly measurement began in 1959. June quarter 1974 previously held the record fall of 2.0%." #auspol @SBSNews pic.twitter.com/qxsi17JXzo

— Brett Mason (@BrettMasonNews) September 2, 2020

Business owners whom have already been affected financially by the COVID-19 outbreak say there is no relief, as they prepare to tackle Australia’s first recession in almost three decades.

For local business owner Tiffany Scott, coming into work was always exciting however now it is a distressing and anxiety ridden chore. Ms Scott owns Miche Boutique in Winston Hills shopping centre and has been operating the clothing store for just under three years.

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Prior to the pandemic Ms Scott recalls the business to be thriving and a great source of income. The news of a recession has deeply frightened the boutique owner as she is concerned her business will soon go under as a result of the recession.

When asked what can be expected for the future of small business’ Tiffany Scott replied;

“I do not expect many small business’ to survive this pandemic. So if you are someone that likes to shop local and support your local business’ then get in quick before they may have to close their doors forever.”

Tiffany Scott