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After the outbreak of the COVID 19 virus, it is taking a long time for Australia to attain economic recovery. The bitter aftermath involves high rising unemployment with a rise in government debt which had affected the global economy as a whole. Australia’s increasing integration into the East Asia economic community offsets the drag from the major advanced economies. However, the quarrel between the US and China and the dislocation in the context of the global trading and the investment relation got threatened and enhanced the tension between the economic and the Australian security choices (Edwards, 2020).
In the context of handling COVID-19 fatalities, the handling of situations like handling of the crisis faced by the Australian governments along with handling the health care workers and the public officials turned out to be successful mostly in Australia compared to other countries. Again the Australian economic response also turns out to be swift, well-targeted and substantiated (Edwards, 2020). The debt of the Australian government due to the pandemic turns out to be more than half a trillion dollars high than it would be otherwise. The Reserve Bank of Australia had doubled its governmental holdings and the private debt from the beginning of the pandemic and had asserted adequate control over the government bond rates. Australia might need adequate time before the confidential implementation of the investment plans, international tourist returns, along with online traveling. After the global pandemic, there had occurred a change in the Australian economic policy options.
The current GDP rate is -6.67 percent (Edwards, 2020). Its trade is being focused on East Asia and is far more influenced by the United States, Japan, and Europe. After the breakout of the pandemic, there had existed a widening gap between the bond rates of Australia and the US bond rates, which will actually create pressure on the Australian dollar, and hence it became one of the serious policy concerns. The COVID-19 pandemic from which Australia is now emerging as the most abrupt, savage, and frightening economic shock in the lifetime of most Australians. But the jolt was also short and unexpectedly shallow. It produced a deliberate cessation of certain activities, and some brought about by the government and others by people’s fear of infection (Edwards, 2020). The primary reason behind the slowdown of productivity in Australia is the changes in the Australian tax structure. The growth in wages was slow but was very closer to productivity growth. In this situation, it can be highlighted that there needs to be planned deficit reductions, and those should also be slower and modest. The better the recovery in the private sector, the deficits can be reduced faster. As a whole, it can be stated that the pandemic had created a fragile as well as an uncertain economy where the economy is still facing bigger challenges in dealing with the consequences (Edwards, 2020).
Edwards, J., 2020. The Costs of COVID: Australia’s Economic Prospects in a Wounded World. [Online] Available at: https://www.lowyinstitute.org/publications/costs-covid-australia-economic-prospects-wounded-world [Accessed 2020].