Invest
Economy may have just hit pre-COVID levels
The Australian economy is tipped to bounce back to its pre-pandemic level within weeks, according to the IMF.
Economy may have just hit pre-COVID levels
The Australian economy is tipped to bounce back to its pre-pandemic level within weeks, according to the IMF.
According to the International Monetary Fund (IMF), Australia is likely to have reached its pre-COVID economic levels as of the March quarter, which could help limit long-term scarring.
The IMF’s latest economic outlook sees the Australian economy expanding by 4.5 per cent this year, up 1 per cent on its January predictions following a contraction of 2.4 per cent in 2020.
In upgrading its outlook, the IMF noted that the “Australian economy continues to show a strong recovery momentum” and that a “favourable labour market recovery continues to support a strong rebound in private consumption, added by wealth effects from rising house prices”.
It also stated that record-low interest rates are continuing to boost the economic recovery.

Treasurer Josh Frydenberg pointed to the government’s economic recovery plan, which includes tax cuts, business investment, infrastructure and targeted support as a further boost to the economy.
“These household and business incentives will help to unlock the more than $240 billion of savings accumulated throughout the pandemic and sitting on private sector balance sheets,” he said.
According to the forecast, Australia also continues to compare remarkably well to other nations, with the IMF forecasting Japan’s economy to grow by 3.3 per cent, Germany by 3.6 per cent and Italy by 4.2 per cent.
“Encouragingly, global growth has also been revised up by 0.5 percentage points to 6.0 per cent in 2021 and by 0.2 percentage points to 4.4 per cent in 2022.”
“Having outperformed all major advanced economies on the economic front in the last 12 months, there is no other country you would rather be in than Australia,” Mr Frydenberg concluded.
About the author
About the author
Economy
Financial pressures and the 'she'll be right' attitude delay Australian divorces
In a revealing study, the Real Cost of Separation Report 2026 by Real Insurance has uncovered a trend of 'quiet uncoupling' among Australians, with financial pressures and concerns for children ...Read more
Economy
Labour market resilience provides RBA room for manoeuvre, says State Street economist
In the wake of the latest Labour Force data release, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and administration and US$5.5 ...Read more
Economy
Geopolitical tensions shape investor strategies in private markets
In the face of mounting geopolitical tensions, investors are honing their strategies in private markets, as revealed by the 44th edition of the Coller Capital Global Private Capital BarometerRead more
Economy
Ellerston sees investment shift as Middle East tensions ease and inflation persists
Amid signs of easing tensions in the Middle East with US-Iran peace negotiations progressing, albeit at a slower pace than desired by markets, investors are being advised to reevaluate their ...Read more
Economy
Global markets face stagflationary pressures amid rising inflation and diverging growth
In a recent macroeconomic report, the Franklin Templeton Fixed Income team has highlighted that global markets are increasingly encountering a stagflationary environment, characterised by intensifying ...Read more
Economy
Corporate capex provides solid footing for US equities, says ClearBridge
In a promising development for the US economy, corporate capital expenditures (capex) are playing a crucial role in supporting economic growth, according to Jeff Schulze, head of economic and market ...Read more
Economy
Brands turn to household care and laundry strategies to weather cost-of-living crisis
As the UK braces for a 13% hike in its energy price cap by July 2026 and US gas prices soar to a four-year high due to geopolitical tensions, the global spotlight is once again on the cost-of-living ...Read more
Economy
GDP data prompts State Street expert analysis on cash rate and trade surprises
In light of the latest GDP figures, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and/or administration and US$5.5 trillion in assets ...Read more
Economy
Financial pressures and the 'she'll be right' attitude delay Australian divorces
In a revealing study, the Real Cost of Separation Report 2026 by Real Insurance has uncovered a trend of 'quiet uncoupling' among Australians, with financial pressures and concerns for children ...Read more
Economy
Labour market resilience provides RBA room for manoeuvre, says State Street economist
In the wake of the latest Labour Force data release, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and administration and US$5.5 ...Read more
Economy
Geopolitical tensions shape investor strategies in private markets
In the face of mounting geopolitical tensions, investors are honing their strategies in private markets, as revealed by the 44th edition of the Coller Capital Global Private Capital BarometerRead more
Economy
Ellerston sees investment shift as Middle East tensions ease and inflation persists
Amid signs of easing tensions in the Middle East with US-Iran peace negotiations progressing, albeit at a slower pace than desired by markets, investors are being advised to reevaluate their ...Read more
Economy
Global markets face stagflationary pressures amid rising inflation and diverging growth
In a recent macroeconomic report, the Franklin Templeton Fixed Income team has highlighted that global markets are increasingly encountering a stagflationary environment, characterised by intensifying ...Read more
Economy
Corporate capex provides solid footing for US equities, says ClearBridge
In a promising development for the US economy, corporate capital expenditures (capex) are playing a crucial role in supporting economic growth, according to Jeff Schulze, head of economic and market ...Read more
Economy
Brands turn to household care and laundry strategies to weather cost-of-living crisis
As the UK braces for a 13% hike in its energy price cap by July 2026 and US gas prices soar to a four-year high due to geopolitical tensions, the global spotlight is once again on the cost-of-living ...Read more
Economy
GDP data prompts State Street expert analysis on cash rate and trade surprises
In light of the latest GDP figures, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and/or administration and US$5.5 trillion in assets ...Read more