Australia’s economic data suggests promising prospects for 2021. Strong results for business
and consumer surveys suggest that Australia’s economic recovery has considerable
momentum. Car sales and housing construction activity are showing exceptional strength. The
Federal Budget announced a lower budget deficit for 2020/21 with better than expected
The Budget also provided extended tax benefits for low and middle income
earners, incentives for business investment and increased spending measures for health care
and infrastructure. The Reserve Bank’s monetary policy settings also remain highly supportive
with guidance that interest rates should remain steady until 2024. The latest spate of
coronavirus cases in Victoria appears to have driven more widespread vaccine uptake.
Article written 3 June 2021.
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