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.
RELATED ARTICLES
About the author
About the author
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
