The Australian economic climate experienced 26 many years of uninterrupted economic growth and was the only OECD country that did not get into recession during the financial crisis of 2007-2008, keeping one of the highest growth rates of the developed world. Given that is definitely had weathered a single global crisis as soon as, it was thought / hoped it could do it again following the global pandemic.
However , it’ s gross domestic product (GDP) shrank 7%, falling the country into its first recession in almost 30 years. At the start associated with 2020, the economic climate was hit by falling growth due to the extreme bushfires that swept the territories, and was the other of the first nations to suffer because of the pandemic.
Unsurprisingly, tourism and the company sector occupies a dominant position in the Australian economy, contributing to 66. 1% to GDP and employing 77. 7% of the workforce. However , with both household and international tourism all but non-existent in Australia last year, this will be a bitter blow for this popular Antipodean country. And with closed borders and strict entry specifications for the country, it might take several years for tourism sector to recuperate.
But all is not lost. Thanks to the country’ s successful virus containment, there was a rise in household investing, which lead to the economy growing with a better than expected 3. 3% in the September quarter, reflecting authorities’ adept handling of the pandemic.
It was this fast, decisive, and strict lockdown action within the first few months, that led to an easing of restrictions as well as substantial fiscal and monetary support which prompted a 7. 9% jump in spending on goods and services in the third quarter.
Faring Better Than Other people
The economic impact of COVID-19 has been far more severe in other nations that have struggled to control the spread from the virus and noticed their death tolls surge before lockdowns came into force, in particular the UK, France, plus Japan saw huge downturns in their economic growth.
Economists say Australia’ s ability to restrict the spread associated with COVID-19, and the Federal government Government’ s massive economic stimulus, means the nation will likely arise from the crisis within better shape than most. However , because of Australia’ s business links with neighbouring countries, in particular The far east, having a significant effect on the country’ h recovery, it might be prudent for businesses to analyse foreign exchange rates to ensure competitive pricing to enable domestic sales keep grow, especially since tourism is set to be stunted for the foreseeable future.