Previous to Omicron, the economic system had established sturdy constructive momentum. It had bounced again rapidly following the Delta-related lockdowns. This momentum, although, wasn’t sustained into the brand new 12 months with Omicron resulting in many individuals need to isolate at dwelling and interrupted provide chains and it affected spending as folks restricted their actions.
But, as soon as once more, the economic system has proven exceptional resilience. Australians have adjusted and so they’ve tailored and we nonetheless count on GDP progress to be constructive within the March quarter, though solely modestly so.
The worst of the disruptive results from Omicron now look like behind us. Provide chains and workforce administration points which have been important are progressively being addressed. And I believe as face numbers pattern decrease over the weeks forward, the economic system will bounce again strongly and we’ll see a pointy pick-up in spending.
Whereas Omicron has delayed the restoration of the Australian economy, it’s not derailed it.