‘Unique Nature’ of Pandemic Economic Downturn Behind the Strength of Australia’s Recovery: RBA
The Reserve Bank of Australia hs said the recovery from the current economic downturn will be significantly different to the recovery from past economic shocks such as the Global Financial Crisis and the Great Depression.
RBA Head of Economic Analysis Brad Jones said in a keynote address at the Minerals Week Australia-Asia Investment Outlook that the current economic shock was different from other episodes, giving the current economic recovery a brighter outlook.
One difference is the origins of the COVID-19 economic contraction, which originated from a severe shock in the global supply chain, unlike the GFC, which originated from the collapse in parts of the financial system.
Date Time
Consumer confidence drops
Consumer confidence declined 2.5 per cent last week, as a seven-day COVID lockdown was announced in Victoria on May 27. Counterintuitively, confidence was down by more in Sydney and Brisbane than it was in Melbourne. All of the confidence subindices fell.
‘Current financial conditions’ fell by 3.0 per cent, while ‘future financial conditions’ softened 2.4 per cent. ‘Current economic conditions’ lost 0.5 per cent and ‘future economic conditions’ dropped 4.0 per cent.
‘Time to buy a major household item’ weakened 2.6 per cent. ‘Weekly inflation expectations’ increased by 0.2 percentage points to 3.9 per cent, pushing the four-week moving average up 0.1 percentage points to 3.8 per cent.
Eventbrite - Sydney Investors, Professionals and Business Networking Group Inc. presents Budget & Economic Update by David Plank - Head of Australian Economics ANZ - Thursday, 24 June 2021 at NBC Sports Club, Northmead, NSW. Find event and ticket information.