We ARE in a recession.

Last month I posted a blog indicating that I believed we were in a recession. Yesterday, Mr Rudd stated that a recession is inevitable. As a result the media is in a frenzy.

I believe the statement made by Mr Rudd is technically incorrect. (Aside from the fact that the rule of two consecutive quarters of negative growth is a little dubious.) If Mr Rudd and his associates believe the next figures to be released will show Australia recorded negative growth for the first quarter of 2009, then, up until March Australia was in a recession. Furthermore, given the less than favourable outlook, it is more than likely that we will be in a recession for sometime yet.