Recession in Australia inevitable, says Rudd

Prime Minister Kevin Rudd on Monday said Australia will not be spared from the worst economic downturn in 75 years and the impact of recession on the country was inevitable.

During an interaction with a group of business leaders in Adelaide, Mr. Rudd said that Australia would not be spared from the worst economic downturn in 75 years.He said recession in Australia is inevitable because more than 20 nations around the world are being affected by the global economic slowdown.

"The worst global economic recession in 75 years means it's inevitable that Australia too will be dragged into recession," media reports quoted him as saying.

He said: "the severity of the global recession has made it impossible for Australia to avoid a further period of negative economic growth. And seven of Australia's 10 largest trading partners were in recession".

"The challenge for government is to cushion the impact of recession on business and jobs," he said. Official figures have warned of an impending recession.

In February, Westpac Bank's leading index of economic activity pointed to more trouble for the Australian economy.

In March, the Reserve Bank of Australia indicated for the first time that Australia's economy was expected to sink into recession this year. (PTI)