Australian economy to recover further in 2021 as pandemic subsides – Reuters poll

The Australian economic recovery will gain traction in 2021 amid better handling of the coronavirus pandemic and policy support measures, the latest Reuters poll of 34 economists showed Friday.

Key findings

“Economists forecast Australia’s A$2 trillion ($1.55 trillion) of the gross domestic product would expand 3.5% this year - the fastest since polling began for the year in April 2019, although slower than the government’s growth projection of 4.5% - after contracting 3.0% last year.”

“Although the country’s jobless rate declined to 6.8% in November from a July peak of 7.5%, it remained above pre-COVID-19 levels of around 5%. Some economists forecast it will hold above 6% this year.”                               

“The poll forecasts consumer prices would rise 1.5% this year and 1.7% next, still below the RBA’s comfort zone of 2 to 3%.”