Report

The New Normal: Navigating an Economic Recovery

Guay Lim, Viet Nguyen, Timothy Robinson, Sam Tsiaplias

Melbourne Institute of Applied Economic and Social Research | Published : 2020

Abstract

On the road to economic recovery, a pickup in household consumption is key, but GDP growth could be weighed down by low growth in population and wages. Australia is a small-open economy, and is materially affected by developments abroad, through trade in goods and services, financial factors, and the international movement of people. COVID-19, lockdowns, and the closure of borders have had a massive negative pervasive impact on Australia’s economic performance in 2020. Overall, GDP plummeted by a record 7 percent in the June quarter following a small fall of 0.3 percent in the March quarter (Australian National Accounts, June Quarter 2020). Australia entered its first technical recession..

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