Australia is not alone in its current economic predicament, and the data point to an even deeper recession.
“The ABS has a hard time getting the job done,” said the latest official data from the Australian Bureau of Statistics (ABS).
“It has no ability to forecast the economy, the government can’t make policy decisions and the private sector can’t buy assets, including shares, bonds and real estate,” the ABS said in a statement to Reuters.
The Australian dollar was down 0.4 percent at 79.83 US cents, or 0.2 percent above the US mark, while the euro was up 0.1 percent at $1.1032, or 1.1% above the euro, while Japan’s yen was up 2.3 percent at 109.85 yen, or 2.6% above its daily high of 109.54 yen.
The Federal Reserve is not happy about the ABS data and will likely tighten monetary policy at its meeting on Wednesday.
The central bank is expected to keep interest rates unchanged at a near-zero rate for a few more months.
However, the Fed has also indicated it is likely to raise interest rates in the second half of the year.
If the Fed does raise interest interest rates, the dollar will likely appreciate, and bond yields will likely rise.
As the dollar has fallen against other major currencies, the value of the Australian dollar is also being eroded.
While it is unlikely that the Australian currency will regain its pre-recession peak of US$1.2427 on December 16, it will still rise to around US$2.02 by the end of 2019, according to the Australian Stock Exchange.
Read more about the financial services sector: Australia’s stock market slump and rising prices: The latest economic data shows a further decline in the number of jobs created in the Australian economy since the end and the fall in GDP, which is the value added by the economy.
ABS data show that the number in the private and public sectors has declined by 0.7 percentage points and 1.4 percentage points respectively since the start of the financial crisis.
In December, the number dropped by 0,907 jobs in the financial sector and by 2,908 in the manufacturing sector.
On the positive side, there were 9,700 more jobs in December in the health and social care sector.
“In the private economy, there is a huge increase in jobs created, the numbers in the construction and the services sector have also increased by a huge amount, especially in the housing sector,” the Australian Manufacturing Workers Union (AMPWU) secretary-general David Ward said.
There is also a large increase in employment in the mining and other industry, where a lot of the growth has occurred in the last year,” he said.