Two regions were outliers with momentum in New South Wales and the Australian Capital Territory accelerating as COVID-19 restrictions were lifted. The ACT remained below trend.
“The reopening of international borders should drive both services exports and imports, but at what pace is unknown.”
The economic impact of the pandemic continues to be felt in early 2022 although ANZ Research expects this to be temporary. Indeed, the economic outlook for 2022 is very positive.
ANZ Research expects Australia’s unemployment rate to fall to the low 3-percentile range this year. Wage growth will likely shift higher and core inflation is forecast to be above the Reserve Bank of Australia’s target band. This strength will be seen across the states and territories.
The reopening of international borders should drive both services exports and imports but at what pace is unknown. Expect to see a divergence across states and territories as the east coast generally attracts more tourists and students.