Covid lockdowns, slow vaccination to threaten Australia’s economic recovery – Reuters poll
According to the latest Reuters poll of economists, the Delta covid strain flareups-led renewed lockdowns are likely to negatively impact the Australian economy this quarter.
Key findings
“While only three economists in the July 7-20 poll expected a contraction this quarter, the consensus pointed to a sharp downgrade. Growth is now forecast at 0.1% on a quarter-on-quarter basis compared with 0.9% predicted in an April poll.”
“It would be the weakest growth since the Australian economy emerged from the recession a year ago. Forecasts ranged between -0.6% and 0.8%.”
“The economy was expected to grow 1.1% next quarter, compared with 0.8% in the last poll. Growth is forecast at 4.9% annually this year, the fastest pace in more than two decades. But it is expected to ease to 3.3% next year and then to 2.9% in 2023.”
“When asked what was the biggest risk to the economy this year, 10 of 14 economists said a slow vaccination rate. The remaining four flagged a spread of new COVID-19 variants.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
