The economy is preparing for the recovery: treasurer
Treasurer Josh Frydenberg is confident Australia’s economy is preparing for a strong rebound during the summer as it reopens for Christmas.
Queensland reopens its borders this week, while international students and skilled workers can enter Australia from Wednesday, as can fully vaccinated tourists from Japan and South Korea.
While the recent round of business and consumer confidence surveys have been mixed, they remain above pre-pandemic levels and suggest a strong rebound is underway.
“By growing the economy, getting more Australians to work and off welfare, we will help secure Australia’s economic recovery,” said Frydenberg.
The Westpac-Melbourne Institute’s monthly consumer confidence survey for December – an indicator of future household spending – is released on Wednesday.
In November, consumer confidence rose a modest 0.6%, but at an index of 105.3, it showed optimists outweighing pessimists.
Westpac chief economist Bill Evans is also optimistic about the economic outlook ahead of increased household spending.
It forecasts galloping economic growth of 6.4% in 2022, building on an expected solid rebound of 2.3% in the December quarter after the 1.9% contraction in the September quarter.
This quarterly slowdown was the third largest on record and was the result of lockdowns in New South Wales, Victoria and ACT.
The sharp increase in savings during the various phases of containment over the past two years is expected to turn into high-level spending.
Evans will lead a presentation by his economics team on the outlook on Wednesday.