Australia’s economy is estimated to have seen its second-biggest contraction in the third quarter of 2021 as the country battled a raging outbreak of the coronavirus delta variant, which forced businesses to shutter and states to seal borders. Economists in a Bloomberg survey said Australia’s GDP had likely shrunk 2.5% quarter-on-quarter in the quarter ended September. That would mark the biggest contraction since the 7% slump in the second quarter in 2020.
The government’s fiscal support during the lockdown is likely to have boosted household incomes. In addition, the saving rates are expected to continue rising as Australians were unable to spend on big-ticket items under the stay-at-home order. The restrictions, however, most likely hurt Australia’s service sector. Inflation probably subdued in the quarter amid anaemic or even negative wage growth.
The Australian government is due to publish its official GDP data on December 1. The country’s central bank has signalled that weak growth would only be a “setback” and remained optimistic that the economic activity would rebound swiftly.
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Published on November 30, 2021 10:40 AM (GMT+8)Last Updated on November 30, 2021 10:40 AM (GMT+8)
