Australia’s economy shows positives signs of recovery, but the nation’s economy hasn’t seen the full impact of current lockdowns in its major cities

GDP results

According to new data from the Australian Bureau of Statistics, the nation’s economy rose 0.7 percent, in the June quarter. GDP gross domestic product per capita also rose 0.4 percent. For 2020-21 Australia’s GDP has now risen 1.4 percent.

The economy is now sitting at 1.6 percent above where it was prior to the Covid-19 pandemic. Treasurer Josh Frydenberg says the results have exceeds all market expectations and are ahead of the Federal Budget’s forecast.

Lockdown bite, still to come

Although the figures are generally positive, they do not give the full picture of the economy’s suffering to come.  Australia’s two major cities, Sydney and Melbourne, remain in lengthy lockdowns. The full impact of these lockdowns will show in September’s figures.

“No, we haven’t seen the full impact of it yet,

If you look at the National Account figures… a lot of the growth was generated by Government sector spending.”

“The message it sends, is we are going to continue to need Government support well through the remainder of the year and next year.” 

Stephen Jones, Labor MP & Shadow Financial Services Minister

Australia's #GDP results are in and it's not all bad news…

But has Australia's economy seen the full impact of lockdowns yet?

– @StephenJonesMP says no. pic.twitter.com/TYU4V7DwfJ

— ticker NEWS (@tickerNEWSco) September 1, 2021

Businesses call for a clear plan

Meanwhile, in an open letter from the business community, they’re demanding a clear plan out of Covid-19 induced lockdowns and closures. Some of the major Australian businesses include aviation airline Qantas, major telco Telstra, banking giants, and the ASX.

The businesses are urging the Government to stick to its National Plan and chart a path out of current lockdowns.

“We represent businesses which employ almost one million Australians, and provide products and services to people right across the nation.” 

“We see the impacts of lockdowns on our people, our customers, on our small business suppliers, and on communities and families across the country.” 

“Providing a light at the end of the tunnel will encourage more Australians to get vaccinated.”

“We need to give people something to hope for, something to look forward to, something to plan around and to be confident about their futures.” 

Open letter from major Australian businesses