Australia's economy is recovering rapidly

Australia's economy is recovering rapidly

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In the middle of last year, Australia showed the worst vaccination results among the OECD countries, and prolonged lockdowns led to a recession in the economy. But still, the country managed to move from outsiders to leaders in a short time thanks to the adoption of a mandatory vaccination program. Currently, 94% of the population (aged 12+) are fully vaccinated, and 59% have been revaccinated.

The high level of immunization of citizens allowed Australia to easily survive the advent of the "omicron", there was no need for new restrictions on movement, and the economy continued to actively recover. Already in November, the number of vacancies exceeded the pre-crisis level by 44%, which led to a reduction in unemployment to 4.0% in February this year. This is the lowest level since 2008.

An additional factor strengthening the economy is the shortage of a number of goods on the international market, since Australia is an export-oriented country. In February, the trade surplus rose to A$12.9 billion, close to a record high of A$15.1 billion.

Following the growth of economic indicators in 2022, the Australian dollar continues to strengthen. The Reserve Bank of Australia keeps the key rate at the minimum levels to maintain momentum and expects an increase in the average salary following the tightening of conditions in the labor market. Now the index is at the level of 2.3% year on year. The regulator is counting on its acceleration to 3% and predicts a decrease in unemployment below 4%.

Core inflation is only 2.6%, which allows the RBA to maintain a loose monetary policy. However, a number of economists predict the first rate increase in May in response to rising real estate and energy prices. While maintaining the pace of economic growth, this will serve as an additional reason for strengthening the national currency.

Tags: Economy


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