Australia suffers first recession since 1991 as lockdowns trash economy

Josh Williamson, an analyst at Citi, said that an unprecedented A$62bn (£34bn) of stimulus was doled out through rescue schemes for companies and workers. He expects at least A$50bn more in the third quarter.

As a result families found their incomes held up even as spending plunged due to lockdown restrictions, so they could save more, potentially paving the way for a stronger recovery when the pandemic is over. Savings rates rocketed from 6pc of income to 19.8pc. 

However, it is hard to judge when the recovery will take hold.

Australia performed well early on in the pandemic, cracking down on the spread of the virus and raising hopes that the country would escape the worst.