Mr. Rudd told an economic forum in Adelaide yesterday that due to the worst global economic recession in 75 years it is unavoidable that Australia would be dragged into recession.
The main priority for the government is to soften the impact that the recession will have on business and jobs. The government will endeavour to take such actions as it deems fit through economic stimulus.
The Prime Minister has uttered the R word for the first time and said that seven of Australia's ten largest trading partners were already in recession. He further stated that the intensity of the global recession had made it impossible for Australia to undergo a further period of negative economic growth. The government has admitted that despite its large spending through the stimulus packages, the economy has gone into recession.
Malcolm Turnbull leader of the opposition told ABC Radio that the Government had admitted that the big spending, big debt strategy had failed.
A recession occurs when there has been two consecutive quarters of negative economic growth. Total gross domestic product declined 0.5 per cent in the December quarter, compared with growth of 0.1 per cent in the September quarter.
In the last 8 years this is the first occasion that the economy has had negative growth.