Let’s face it. The COVID-19 pandemic has wounded many countries’ GDP growth, but that does not mean that all of them will not survive in the oncoming years. One such country is Australia. Being one of the most developed countries globally, Australia continues to enjoy a super-fast growing economy thanks to her export partnership with the many countries located in the Northeast and Southeast Asia.
What is the secret behind Australia’s booming economic growth despite the challenges that the pandemic brought? What are its economic prospects in a world that is trying to recover?
As of now, Australia has recorded a growing GDP of 3.3% by September 2020, a clear indication that the government’s efforts to keep the economy in a sound state despite the pandemic is working. The growth can be attributed to an increase in household spending in terms of goods and services. Nevertheless, the country has received its share of misfortunes as a result of strict lockdowns. This led to a decline in business activities by 3.8% by September 2020.
In every situation, there is always a silver lining. According to Reuters’ poll of economists, it is projected that Australia will record a 2.6% GDP and 4.4% annual contraction. This sounds like good news to people who want to invest in the country because it has not experienced the biggest quarterly increment in GDP since 1976.
What’s Next for Investors?
When you compare Australia to most European countries, it is clear that its economy has a bright future. The government of Australia has aggressively contained COVID-19 by lifting the ban on most restrictions. It has also combined substantial monetary support, leading to massive job recruitments across the whole country.
Improved Healthcare Service Delivery
On matters related to health, Australia has performed better than any other country in the world. Most health institutions are well-equipped with highly-advanced tools and equipment. Medical practitioners have embraced the idea of telemedicine to curb the infection. Doctor-patient interaction is made possible through broadband technology, making it easier for patients to access healthcare remotely.
Low Government Debt
Unlike other countries, Australia’s government has started on a high note after the pandemic due to low public debt. According to the International Monetary Fund (IMF), Australia recorded a net debt of 23% of GDP in 2019. This is way below the average for developed countries. It means that Australia is on its way to a full economic recovery.
Increased growth in the service industries
From professional to technical industries, Australia has recorded a massive growth in the services sector. For example, the healthcare and social assistance sector has recorded an increase of 4.5% due to the government’s efforts to contain the Corona Virus. It has also diversified its service industry by supporting innovative providers to develop new ideas to transform the country’s economic growth.
Invest in Australia Now, Reap Massively Tomorrow
Whether you are a budding local entrepreneur or are looking to expand your business in Australia, now is a good time to invest. With the kind of economic prospects the country is expected to achieve by 2021, there is no reason why you should not start, expand, or diversify your business.