Australian economy shrinks due to lockdown
This content was published on Dec 1, 2021 – 00:36
The official statistics agency reported on Wednesday that border closures and closures caused a 1.9% contraction in the Australian economy in the third quarter, a slower-than-expected decline.
The Australian Bureau of Statistics estimated that the quarterly decline was due to “prolonged lockdowns” in the country’s most populous cities and states.
It is the first contraction of the Australian economy since it fell at the start of the pandemic, and contrasts with other large economies such as Canada, India, Japan and the United States that grew in the same quarter.
Sydney, Melbourne and Canberra were confined to most of the third quarter, so households spent much less on services.
There was a 21% reduction in spending on hotels, cafes and restaurants and 40% in transportation costs.
Economists expect a decline of about 2.8%, but an increase in exports, thanks to higher coal and gas prices, tempered the decline.
The Australian economy should recover in the last quarter of the year, but Wednesday’s numbers raise concerns about the impact that the omicron will have.
Australia is one of the countries that has tightened entry requirements in response to the disparity.
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