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

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.

The Australian Economy in 2021–2022: The Virus Strikes Back

“…While the RBA, as part of its monetary policy strategy, is committed to boosting nominal wages growth, a key determinant of real wages growth is productivity growth. As discussed in Lim et al (2021), prior to the pandemic, Australia's productivity performance was lacklustre. The implications of the pandemic for ongoing productivity growth are presently unclear; nevertheless, it is possible that weak real wages growth will persist.…”

“…In Lim et al (2021), we compared the adverse impacts of the pandemic on Australian labour markets with those of two previous major downturns: the 1990s recession and the global financial crisis. To update the analysis and to compare the recoveries following these events, Figure 14 plots the employment to population ratio over these events.…”

Economic Considerations in COVID‐19 Vaccine Hesitancy and Refusal: A Survey of the Literature*

“…An analysis of the first phase of the pandemic by Lim et al. ( 2021 ) described widespread negative effects from international border closures affecting the tourism and higher education sectors and reducing migration; major effects on the labour market; and “a massive negative pervasive impact” on domestic demand and consumption. The most severe effects were felt by women, the young, and accommodation and food services, transport, arts and recreation, and retail trade.…”

Using a consumer choice model to explain the effect of the newly developed oxford COVID-19 government stringency measure on hotel occupancy rates

“…This study adds value to the tourism and hospitality literature by engaging in an investigation that shifts attention towards the role and importance of tourism governance and specific pandemic-driven government policies and their impacts on the tourism and hotel industry within an appropriate modelling framework using a new data set. Recent studies (for example, Pileggi 2021; Ozturk 2021; Lim et al 2021;Thirumaran et al 2021;Costantino et al 2020) made attempts to investigate pandemic driven government policy responses, showing how COVID-19 has impacted the tourism and hotel industry. This study complements these authors line of investigation.…”