Australia might be in its first recession in almost three decades, but our economy is faring better than many advanced economies driven into decline as they attempted to fight a surge in coronavirus infections.

On Wednesday, Treasurer Josh Frydenberg conceded Australia will enter into a technical recession when the June quarter GDP data is released, breaking its record of 28 years without one.

But economists say Australia’s ability to limit the spread of COVID-19, and the Federal Government’s massive economic stimulus, will mean the nation will likely emerge from the crisis in better shape than most.

That doesn’t mean Australians aren’t feeling immense financial pain, and economists point to two big risks for Australia’s economy.

Firstly, what happens post September when JobKeeper — the $1500 fortnightly wage subsidy scheme supporting 3.5 million Australians — is removed, and mortgage repayment holidays offered by banks end?

And second, what if there’s another wave of COVID-19 infections?

Australia’s growth slowed 0.3 per cent in the March quarter, and annual growth was just 1.4 per cent — its weakest since the last downturn in 2009.

Economists expect gross domestic product (GDP) will go deep into negative in the June quarter as the full impact of the coronavirus-driven shutdowns is revealed.

But as the Treasurer pointed out in a slide when the national accounts data was released on Wednesday, Australia’s economic contraction is not so bad compared to that experienced overseas.