The Australian economic recovery remained strong in the March quarter with GDP up 1.8% – seven reasons for optimism

The Australian economy continues to recovery strongly.

 This note looks at the outlook. The key points are as follows:

  • With growth of 1.8% in the March quarter, Australian GDP is now back above its pre pandemic level.

  • While uncertainties remain – including around the latest coronavirus outbreak in Victoria – there are seven reasons for optimism that the recovery will continue at a decent rate:

    • Vaccines

    • Global growth is ramping up

    • Consumer spending is well supported

    • Dwelling investment is likely to remain strong

    • Business investment is strengthening

    • Fiscal stimulus is continuing

    • Monetary policy remains ultra-easy

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