A resilient economy that outperforms in global rankings
Australia’s economy has shown resilience to multiple shocks throughout the COVID-19 pandemic. Closed borders and targeted lockdowns contained the virus throughout most of 2020 and 2021. International trade remained strong in most sectors, partly thanks to high commodity prices. Australia’s international arrivals began to resume in November 2021 and the international border fully reopened in February 2022.
The Australian Government’s cautious approach has benefited the economy. Australia’s household consumption is expected to improve as restrictions ease. Meanwhile major tax incentives are projected to trigger the strongest boost in business investment since the mining boom. Australia’s growth rate is remaining strong at 4.2% in 2022, according to the International Monetary Fund (IMF).
Australian GDP is projected to be 6.7% larger by the end of 2022 than in pre-pandemic 2019. This increase over the pre-COVID-19 level in 2019 is higher than the average for advanced economies (3.7%).
Two other factors underpin our resilience: location and diversity. Fast-growing Asia is set to deliver 44% of global GDP by 2026. Australian trade is already oriented towards Asia’s economies – especially in minerals, energy, services and agriculture. Also, our diverse and highly productive economy is resilient against economic shocks, including the ongoing pandemic.