Is the Australian economy still growing?

Is the Australian economy doing good? Is it still growing or is there a fear of recession? Well, put in simple words, yes the Australian economy has had slowed down due to the pandemic, but it is still steadily growing. The pandemic proved to be a serious challenge for the entire economy, since the economy fell down to almost 2.4% in 2020. But with a swift vaccination process and proper management, the economy is predicted to bounce back.

The Australian government too; throughout the course of the pandemic; has supported businesses by backing them with funds, providing assistance to the struggling economy of Australia. The support came with a $20 billion stimulus package which ensured that Australians were employed and that businesses were able to continue to operate.

Despite severe lockdown, several parts of Australia remained resilient during the September quarter. Exports of resources, energy, and agriculture continued to rise, indicating that the economy could still recover. The September quarter growth came after a 7 per cent economic contraction in the three months through June — the worst fall on record, which confirmed Australia had entered a technical recession due to the coronavirus pandemic.

Federal Treasurer Josh Frydenberg said there was reason to take hope in the latest numbers, but said that the country was not out of crisis yet. “Technically the recession is over, but the recovery is not,” he said. That the economic indicators are positive but it is a very challenging time and there is a lot of ground to make up.

If all things go well, Australia is set to become one of the most economically sound country in 2022, with the country’s GDP expected to be 1.6%. With new startups, technological advances and a stable migration, the economy is set to increase even further. As the economy and international borders reopen, the International Monetary Fund predicts that GDP will expand to 4.1 percent in 2022.

But the economy in the first quarter of 2022 will probably depend on several factors, since there are risks involved due to the complicated and distinctive nature of recent developments. COVID continues to provide a problem to policymakers, as costs rise as a result of logistical challenges and complex geopolitical negotiations. Also, diplomacy between China and Australia will prove to be essential for the Chinese students and workers who want to come to Australia.

Australia’s financial situation is stable. But it will take a lot of resilience and patience to bring the economy back to where it was before the pandemic. The government has to effectively plan out how to bring back international students and workers since they contribute to a major part of the economy in the country.

Are you planning to go to Australia for study or work? Contact us here or our socials and we can map out your post pandemic journey to Australia.