To maintain Australia’s strong health record through the COVID-19 pandemic, each of the major capital cities has endured a snap lockdown since late December 2020, according to Oxford Economics. These lockdowns have been accompanied by restricted interstate travel and, in some instances, hard border closures.
The data currently available for this period suggest these lockdowns have increased volatility in the range of economic outcomes from month to month. But they do not appear to be derailing the recovery. Lockdowns have shifted the timing of retail sales, rather than materially affecting the level.
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