Australian Bureau of Statistics Reports 1.9% GDP Drop as Australia’s Economy Takes Following Delta Lockdowns | Liverpool City Champion
Delta’s damage is done but the emergence of new variants is fueling concern Australia’s economy is not yet free from the clutches of the pandemic.
The latest national accounts figures showed that the lockdowns in the southeast of the country caused the economy to contract, with the quarterly gross domestic product falling by 1.9%.
This is the third largest quarterly contraction on record, but on an annual basis, GDP grew 3.9% from a year ago.
The result was better than market expectations which anticipated that the delta dent would affect GDP by 2.5%.
During Treasurer Josh Frydenberg’s quarterly presentation on the State of the Economy on Wednesday, the Coalition’s silver man said “a cool head must prevail” to ensure the rest of the pandemic is over. lock free.
“[Wednesday’s] the national accounts numbers are really a foreclosure story, âhe said.
“We can and we must live with the virus and its variants. Omicron is not the first and it is unlikely to be the last variant we face.”
Mr Frydenberg also revealed that he is in talks with other countries about an increased role the OECD can play in helping vaccination rates in developing countries, where the threat of viral mutations is higher.
“When these vaccination rates are lower, there is a greater likelihood of not only hospitalizations, deaths and cases, but also mutations in the virus,” he said.
“This is an issue that emerged from my discussions with Janet Yellen (United States Secretary of the Treasury) and with my Canadian, New Zealand and British counterparts.”
The Australian Bureau of Statistics noted that surging exports of resources and agriculture partially offset sharp declines in household consumption and demand.
The falls in ACT were the worst in the country. Household consumption spending in ACT fell 11.1 percent, while NSW and Victoria fell 10.8 percent and 5.2 percent respectively.
The total final demand of the bush capital state fell 1.8% and was better than that of the two largest foreclosure states overall due to higher levels of public investment.
Labor Treasury spokesman Jim Chalmers used falling GDP to attack the Morrison government, claiming Australia was the worst performing economy in the September quarter, claiming quarantine failures hotels and the vaccine rollout were the only reason the economy shrank.
âThis is the slowdown that we didn’t need to have,â Dr. Chalmers said.
“We cannot be satisfied with a recovery when we have the omicron threatening strain and where we have a government that has done nothing to plan for the future.”
Household savings increased during the quarter, a trend that has been well documented when spending opportunities are limited by bottlenecks.
The household savings-to-income ratio fell from 11.8% to 19.8%, but was below the peak of 23.6% seen in the June 2020 quarter.
EY chief economist Jo Masters said Australia’s economic health remains well positioned to rebound from lockdowns, noting that recent indicators showed strong consumption and a continued injection of public sector investment. and private.
“Our playbook is pretty good,” she said.
“I’m pretty confident in the cyclical rebound. We only need 2% growth in the December quarter to bring the economy back to its pre-delta level.”