Australia: New COVID ripple will dent but not derail economy

A new outbreak of COVID-19 cases in Sydney and a scattering of cases elsewhere around the country has led to a significant ramping up of trading and travel restrictions, according to Oxford Economics. Australian authorities have been very proactive in their responses to outbreaks since the start of the pandemic, but the increased transmissibility of the Delta strain will see a redoubling of these efforts.

At this stage, Sydney and Darwin are the only cities experiencing major trading restrictions, but they are less onerous than those imposed earlier in the pandemic; on-site work is permitted and education facilities are open. While travel restrictions are more widespread, workplaces are now more adept at remote working, and the overall impact on the economy is expected to be relatively limited. But the outbreak clearly highlights that until the vaccine rollout is completed the pandemic will remain a source of downside risk.

Sydney’s “Bondi cluster” of COVID-19 ca