According to a report by the Australian Bureau of Statistics on Wednesday, gross domestic product grew 0.7 per cent on a quarterly basis in the three months to June 20, beating analysts’ expectations of 0.5 per cent. The growth rate started at 1.9 percent in the first quarter and 3.2 percent in the last quarter.
On an annual basis, GDP grew by a record 9.6 percent in the second quarter, however, due to the low base. Last year, the first wave of the pandemic crippled the economy and caused an unprecedented 7 percent decline. More than a million people lost their jobs after the government in March declared a biohazard, closing borders, suspending production and closing stores.
Analysts fear that this dire pattern will be repeated due to the rapid spread of the highly contagious delta mutation of the coronavirus. As a result of lockdowns imposed in major cities – Sydney, Melbourne and Canberra – GDP could fall by as much as 2-3 per cent or more in the current quarter. The government hopes the vaccination campaign will speed up after a rough start and reach 70% vaccination sometime in October. The shortage affecting audiences will be lifted when they reach 80 percent, which he expects by November.
Australia’s gross domestic product fell by 1.1 per cent last year as a result of the coronavirus pandemic. The economy entered a technical recession in the second quarter, for the first time since 1991, but in the second half of the year there was a strong recovery due to massive and timely monetary and fiscal stimulus.
The central bank is now under strong pressure to delay the launch of its pandemic bond purchase program scheduled for September. The base rate, which has been cut to a record low of 0.1 percent, is not expected to be raised until at least 2023.
The positive in the second quarter was that nominal GDP rose to a record A$2,070 billion (US$1,510 billion), making Australia the 11th largest economy in the world. GDP per capita jumped to A$80,432. This outstanding performance is largely due to the fact that the prices of the vast majority of exported raw materials have risen very significantly.