Introduction:
Australia’s economy has been through a lot in the past year, with the COVID-19 pandemic causing a lot of economic turmoil. However, a recent Bloomberg survey has found that Australia’s chances of sliding into a recession have decreased. This is good news for the country as it tries to recover from the pandemic’s economic impact.
What is the Current State of Australia’s Economy?
Australia’s economy has been through a lot in the past year, with the COVID-19 pandemic causing a lot of economic turmoil. The Reserve Bank of Australia (RBA) has been trying to keep the economy afloat by implementing an 11-month tightening cycle. However, the RBA recently decided to pause this cycle, which has helped improve the economic outlook.
Bloomberg conducted a survey of 17 economists to determine the current state of Australia’s economy. The survey found that the median estimate for a slump is 35%, down from 40% last month. This is good news for the country as it means that the chances of a recession have decreased. AMP Capital Markets and Commonwealth Bank of Australia predicted a 35% chance of a slump.
How Has the COVID-19 Pandemic Affected Australia’s Economy?
The COVID-19 pandemic has had a significant impact on Australia’s economy. The country experienced its first recession in almost three decades in 2020 as a result of the pandemic. The country’s GDP fell by 7% in the June quarter of 2020, which was the largest quarterly fall on record.
The pandemic has affected various sectors of the economy, including tourism, hospitality, and retail. These industries were hit hard by the pandemic, with many businesses forced to shut down or reduce their operations.
What Measures Has the Australian Government Taken to Boost the Economy?
The Australian government has implemented various measures to boost the economy and support businesses affected by the pandemic. Some of these measures include:
JobKeeper: This program provided financial support to businesses to help them keep their employees on the payroll.
Cash payments: The government provided cash payments to eligible Australians to help them through the pandemic.
Low-interest loans: The government provided low-interest loans to businesses to help them keep their operations running.
Tax relief: The government provided tax relief to businesses to help them through the pandemic.
Conclusion
In conclusion, Australia’s economy has been through a lot in the past year due to the COVID-19 pandemic. However, the recent Bloomberg survey has found that the chances of Australia sliding into a recession have decreased. This is good news for the country as it tries to recover from the pandemic’s economic impact. The Australian government has implemented various measures to boost the economy and support businesses affected by the pandemic. With the current state of the economy, it is hoped that Australia will be able to recover from the pandemic’s impact and continue to grow in the future.
