 Due to a credit squeeze, the economy had gone into a brief recession in 1961
Australia was facing a rising level of inflation in 1973, caused partially by the oil crisis happening in that same year, which brought inflation at a 13% increase.Economic recession hit by the middle of the year 1974, with no change in policy enacted by the government as a measure to counter the economic situation of the country.Consequently, the unemployment level rose and the trade deficit increased significantly.