Australia economy shrinks, recession on the horizon?

SYDNEY: Australia’s economy shrank last quarter as businesses, consumers and government all cut back on spending, a shock result that threatens both the first recession in a quarter of a century and the country’s vaunted triple-A credit rating.

The 0.5% contraction was the largest since 2008 and a major embarrassment to the conservative government of Malcolm Turnbull which won an election in July on a pledge to deliver growth and jobs.