Coronavirus continues to cause havoc……

In the latest update Dr Shane Oliver looks at the renewed rise in coronavirus cases globally and the outbreak in Australia and the implications for the economic recovery.

The key points are as follows:

• The news on coronavirus has been bleak again lately – with rising cases globally and the ongoing NSW lockdown.
• However, there are five reasons for optimism: lockdowns still work against Delta (eg, in SA & Victoria where lockdowns were able to be relatively short because they started early and hard); vaccines are working; once lockdowns end economic activity rebounds quickly; the threat posed by Delta will keep fiscal & monetary policy easier for longer; and vaccinations are ramping up in Australia.