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The Australian Economy in 2020–21: The COVID‐19 Pandemic and Prospects for Economic Recovery

Author

Listed:
  • Guay Lim
  • Viet Nguyen
  • Tim Robinson
  • Sarantis Tsiaplias
  • Jiao Wang

Abstract

This article summarises developments in the Australian economy in 2020. It describes the economic growth and labour market ramifications associated with COVID‐19, and the fiscal and monetary policies implemented to help counter its effects. COVID‐19 has resulted in considerable slack in an economy that was weak pre‐pandemic. While current policies are appropriately focused on stimulating demand and supporting employment, existing challenges such as weak growth in productivity, gross domestic product and real wages are also likely to remain relevant post‐pandemic.

Suggested Citation

  • Guay Lim & Viet Nguyen & Tim Robinson & Sarantis Tsiaplias & Jiao Wang, 2021. "The Australian Economy in 2020–21: The COVID‐19 Pandemic and Prospects for Economic Recovery," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(1), pages 5-18, March.
    • Handle: RePEc:bla:ausecr:v:54:y:2021:i:1:p:5-18
    DOI: 10.1111/1467-8462.12405
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    References listed on IDEAS

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    1. Eric T. Swanson & John C. Williams, 2014. "Measuring the Effect of the Zero Lower Bound on Medium- and Longer-Term Interest Rates," American Economic Review, American Economic Association, vol. 104(10), pages 3154-3185, October.
    2. James Bishop & Iris Day, 2020. "How Many Jobs Did JobKeeper Keep?," RBA Research Discussion Papers rdp2020-07, Reserve Bank of Australia.
    3. Rachael McCririck & Daniel Rees, 2017. "The Neutral Interest Rate," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 09-18, September.
    4. Jeff Borland & Andrew Charlton, 2020. "The Australian Labour Market and the Early Impact of COVID‐19: An Assessment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 297-324, September.
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    Cited by:

    1. Azmat Gani, 2022. "Using a consumer choice model to explain the effect of the newly developed oxford COVID-19 government stringency measure on hotel occupancy rates," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4313-4333, December.
    2. Viet H. Nguyen & Tim Robinson & Sarantis Tsiaplias, 2022. "The Australian Economy in 2021–2022: The Virus Strikes Back," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(1), pages 5-24, March.

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