Australia joined the exclusive club because growth exceeded the pre-pandemic peak

The Australian economy has recovered fully from the decline of Covid-19, growing 1.8 per cent in the first three months of 2021 compared to the previous currency thanks to a rebound in business investment and an iron surge. exports.

The more expected growth means the economy is now 0.8 percent larger than it was before the first coronavirus detection in China in December 2019, lifted Australia has become the preferred group of countries to grow in the last 15 months.

But economists have warned of the slow pace of the country’s vaccine launch and the outbreak of Covid-19 in Melbourne, forcing a lockdown in the state of Victoria, which puts it at risk of recovery and stifling growth.

“Australia is the rare company here,” said Kristian Kolding, an economist at Deloitte Access Economics. “Only five more countries can boast economies that are much larger now than before the pandemic. And we have achieved that goal while keeping Covid numbers lower than almost anywhere.”

Australian authorities ’successful crackdown on Covid-19 and stimulus measures boosted business confidence, prompting a 5.3 per cent increase in private investment in the March quarter.

Business investment was delivered by an 11.6 per cent increase in machinery and equipment, the fastest increase since the December quarter of 2009. Housing investment moved 6.4 per cent compared to the previous quarter.

On an annual basis, gross domestic product increased by 1.1 percent. The economy grows 3.2 percent in the December quarter compared to September in the quarter.

Australia’s recovery was boosted by rising commodity prices, particularly iron ore, with terms of trade – a measure of export prices relative to import prices – rising to 7.4 percentage in the first quarter. This brings the country’s current account surplus to a record high of A $ 18.3bn ($ 14.2bn) in March money.

China’s trade tensions, sparked by Canberra’s call for an inquiry into the beginning of Covid-19 outbreak in Wuhan, failed to refuse to export to Beijing without access to alternative steel-making component supplies.

Only Australia, China, Chile, Romania, South Korea and Lithuania have grown their economies from the Covid-19 penetration, according to research by Deloitte Access Economics. On average the economies of OECD countries, a group of rich countries, are 2.7 percent smaller than before the epidemic, it said.

However, the virus remains a challenge. On Wednesday, authorities extended Melbourne’s seven -day lockdown to contain clusters while only 4.4m of the estimated 40m jabs needed to cover the country’s population of 25m people were given.

“The economic performance of countries will depend more on how fast populations are vaccinated,” said Saul Eslake, a fellow at the University of Tasmania.

“And on the front side we’re behind the UK, US, Canada and even most of the European continent. That’s why it’s never guaranteed that we’ll stay at the head of the pack.”

Latest coronavirus news

Follow FT’s live coverage and analysis of the global pandemic and the rapidly changing economic crisis HERE.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *