The Australian economy contracted in the third quarter. The cause was the lockdown in Sydney, Melbourne and Canberra, among others, due to the corona pandemic.
As a result, consumers spent less, especially on services such as the catering and cultural sector, but also transport.
The decrease of 1.9 percent compared to the second quarter was not that bad because economists had expected a contraction of 2.8 percent. The increased energy prices helped because it increased the demand for coal, which was also more expensive. The export of that fossil fuel supported the Australian economy.
On an annual basis, the Australian economy grew by 3.9 percent. However, last year there were also lockdowns in the country that caused shrinkage.
Recent figures indicate that the economy is recovering strongly from the lockdowns. For example, after those closed periods, households have more money to spend, and the import of goods is also picking up again. The Omikron variant of the coronavirus nevertheless creates uncertainty. Australia tightened travel restrictions again because of this variant.
Nevertheless, the country hopes to be able to prevent new hard lockdowns thanks to vaccinations. Meanwhile, 87 percent of Australians aged 16 and older have been vaccinated.