Australia: Primed for investment and trade

Australia’s economy grew faster than expected in the first half of 2021. GDP exceeded its pre-pandemic growth rate and unemployment fell below pre-pandemic levels in the June quarter.

An outbreak of the Delta variant in June 2021 resulted in severe lockdowns, especially in New South Wales and Victoria. These lockdowns continued into October. The Australian Government and state and territory governments again provided substantial fiscal measures to support households and businesses. However, the lockdowns are expected to have weighed heavily on business activity and labour market in the September quarter.

The Australian economy is predicted to rebound towards the end of 2021. Four factors will support recovery: the further easing of restrictions; the reopening of domestic and international borders; the success of vaccine rollout programs; and continued economic support from all levels of government.

Real GDP is forecast to grow by around 4% in 2022, according to the International Monetary Fund. Some sectors look especially strong. Resources, energy and agriculture exports are projected to deliver new output records in 2022.

Beyond the near term, our resilient, services-based economy is adapting to changes in global trade. Australian entrepreneurs are looking to new markets and sectors to boost growth. Australian fintech is making a big impact overseas, for example. Strong trading relationships with the world’s major markets will help Australia expand its global presence.

Perhaps Australia’s greatest asset is its skilled and creative workforce. Our universities and skills-training colleges create resourceful, dynamic and enterprising workers. As one of the most multicultural and multilingual countries in the world, we use our global ties to connect with the best the world has to offer.

Australia welcomes productive foreign investment, whether from multinational giants, ambitious startups or research organisations. We are a safe, stable location to invest and do business. What we have to offer is smart people, solid governance, strong global connections and a lifestyle that’s the envy of the world.

Australia welcomes productive foreign investment

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