Australia’s economy will recover slowly from COVID-19

Significance

Australia is battling COVID-19, which has necessitated social and economic lockdowns which have hit the economy. Parliament passed the budget measures on October 9, with little opposition.

Impacts

• A premature withdrawal of stimulus policies could reduce business hiring and add to private debt.
• The failure of Australia’s states to agree on a national strategy for reopening borders will delay economic recovery.
• Immigration curbs will remove a key growth driver and could cause a net loss in population.