The definition of RECESSION is when there is two or more months of negative growth in the GDP.
GDP = consumption + gross investment + government spending + (exports − imports)
Now COMSUMPTION is the purchase of goods and services, any investment in IP’s would increase the GDP. GROSS INVESTMENT goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). Any investment in IP’s will have no bearing on this. GOVERNMENT SPENDING can in no way be influenced by any investment in IP’s. That leaves EXPORTS – IMPORTS and this is why Australia might be heading into a recession, our exports have declined and the cost of imports have increased. Hard to imagine how investing in IP’s has anything to do with either. So RED what is your point?
