A resilient economy that outperforms in global rankings
Australia continued to feel the impact of the COVID-19 pandemic in 2021. An outbreak of the Delta variant in June 2021 forced major cities and regional and rural areas into lockdown, particularly in the heavily populated south-east. The Australian Government again provided economic support for businesses and workers. States and territories stepped up their vaccination programs. Restrictions eased in October 2021 as vaccination rates increased.
Economic activity is expected to contract by around 3% in the September quarter, according to Australia’s Treasury. Although the September quarter was tough, some parts of the economy remained resilient during this challenging time. Resources, energy and agriculture exports kept growing.
According to the International Monetary Fund, Australia’s GDP growth rate is expected to rebound to 3.5% in 2021, after declining to 2.4% in 2020. The IMF also forecasts our GDP to grow to 4.1% in 2022 as the economy and international borders reopen.
In financial terms, Australia remains solid. The Australian public sector debt ratio will be 43% of GDP by the end of 2022. On current forecasts, this is well below the 89% average forecast for advanced economies.