Australia’s post-pandemic economic development has come in leaps and bounds. This is because of Scott Morrison’s proactive measures to ensure economic development from the shambles left of the economy by the COVID19.
These measures though very effective have impacted the fiscal standing of the country, as well as the projected population, According to The Intergenerational Report 2021, the impact on both the population and the government’s allocations will endure longer, as much as 40years.
The Effect of the Corona Virus on the Economy
Australia’s economy, like other countries, had been pummeled by the COVID-19 pandemic. In the middle of last year, the economic future of the country was strangely uncertain. As there was no medical breakthrough for treating or preventing the Corona Virus. The post-pandemic economic development was predicted to drag.
The Measures Taken and Their Outcome
The first step taken by the Prime Minister was to prevent movements across the international borders and ensure slower movements between states. The government also came up with massive financial stimulus projects to aid the citizens, and funds were continuously pumped Australia’s economy. This was a deviation from the Government’s earlier plans to have a surplus budget and this resulted in a record budget shortage in 2020/2021.
Other measures taken included stoppage of skilled labor immigration, early lockdown ease within the country, and much investment in the medical sector. All of these measures aided the country’s economic recovery.
Economic Prosperity
The Australian economy benefitted from the Government policies and is now well beyond its pre-pandemic state and predictions. Amongst many events, exports are flourishing through increasing cost of iron ore, unemployment rates have drastically reduced to 5.1%, citizens’ spending rates are high, there are more local vacations, there are more housing demands outside the major cities as citizens troop there due to remote works, online retail trading has been on the high due to social distancing an increase in housing rent has led to an increase in demand for buildings.
In general, new development has been successfully channeled through the very restrictions that were thought would harm the economy, such as restricted international borders and limited internal mobility.
Impact on Government Budget and Population Growth
‘The Intergenerational Report 2021’ however reports that the cost of Australia’s economic boom is a shortage in the government’s budget. It also says that this deficit is forecasted to last for a while, as much as 40 years.
The report states that the population forecast also reduced from 40 million by 2056 to 38.8 million by 2061. This means a smaller and increasingly aging population than earlier predicted. Also, there is no urgency to open the international borders for immigrants and visitors until it is safe to do so. The international border restriction is set to last till July 2022.
Impact on the Australian Dollar
The Australian Dollar is and will keep benefitting massively from the boom in the economy, although it is still recovering generally from the overall impact of the coronavirus Pandemic.
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