Australia’s health and economic outcomes are not a “rock step” from Omicron: economists

Despite the rapid expansion of Omicron, the Australian economy will not be hit as hard as it was during the delta blockade, according to economists.

Chris Richardson, a partner at Deloitte Access Economics, said that for the first time since the COVID-19 pandemic began, health and economic outcomes seemed “not exactly linked to each other.”

“This time, the results look pretty good for work and unemployment,” Richardson said. Australian person.. “Even with the Omicron wave, we believe that the 2021-22 damage to the federal and state budgets will be less than official estimates.”

According to Deloitte’s latest Business Outlook Report, the combination of high vaccination rates and high levels of savings means resilience and recovery.

“Few things have created great joy in the COVID era, but Australia’s ability to perform its duties is one of them,” says Richardson. “If COVID allows, we can see that the unemployment rate is flirting at 4% by the end of 2022.”

Deloitte predicts that more than 100,000 people will return to the workforce and more than 200,000 will find new jobs each year in the 2022 economic outlook. However, Australia’s population will be 700,000 less this year compared to pre-COVID projections.

In addition, GDP is projected to increase by 3.6%, household spending by 6.4% and corporate investment by 5.2%.

“For all challenges, 2021 recorded the fastest growth in the Australian economy since 2007 and the second fastest growth in the last 20 years. Deloitte Access Economics considers 2022 to be a similar story. Australia’s growth is above average as the economic pandemic damage continues to be repaired, “Richardson said.

However, Omicron is now having a significant impact on “high five” industries such as trucks and distribution. This is evident in the food and grocery sector, where supermarket shelves are vacant.

“The pain is probably temporary, but it’s huge,” Richardson said.

Federal health minister Greg Hunt said there are signs that Omicron’s spread is peaking in eastern states, while the federal government is taking steps to support labor shortages under quarantine rules. ..

“I haven’t said it’s reached yet, but in particular, all of these jurisdictions are well below expectations of initial hospitalizations, ICUs, and ventilation,” Hunt told reporters on Sunday. rice field.

After a recent recovery from COVID-19, Finance Minister Josh Frydenberg said the blockade was undoubtedly worse than Omicron.

“That’s why we shouldn’t go back to thinking about blockades,” Frydenberg said. 3AW radio.. “This is a new challenge and a new stage of the virus. I would like to say that this is the last variant we face, but no one really knows.”

Rebecca Chu


Rebecca Zhu is an Australian reporter based in Sydney. She focuses on Australia’s economy, property and education. Contact her at [email protected]