Australian economic policy during the pandemic
Despite being frequently overlooked on the international stage, the Australian economy is a robust example of a modern, stable economy.
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Fourth freest economy globally
It ranks as the fourth freest economy globally on the Economic Freedom Index and maintains over twenty years of economic expansion. With booming activity in the service, industry, and agriculture sectors, the Australian economy is a diverse and complex network. Upon the COVID-19 outbreak, the Australian government quickly created and implemented plans that eased the impact of the pandemic on both healthcare and the economy. In this effort, they were relatively successful among their international peers, and garnered them attention from countries like the United States. However, several significant sectors were significantly changed during the pandemic, such as the tourism, retail, and education industries.
In this video you'll see a guide on how Australia became the fourth freest economy globally
Tourism sector in Australia
Much of Australia’s tourism activity occurs on the domestic level. However, Australians usually spend more on international tourism than international tourists contribute to their economy. This indicates that Australians as a whole are not losing as much as possible, but these funds are not circulating in the same manner as they would have pre-pandemic. This would naturally imply that redirecting prospective Australian tourists to domestic travel will substantially aid the sector. Unfortunately, as social distancing measures and other pandemic regulations remain in play, this is unlikely to occur. Therefore, the tourism industry is expected to sustain compounding losses during this period. This will likely bleed into other economic areas, such as the entertainment and retail sectors.
Retail industry got hit
The retail industry has also seen a change in its economic activity. As many Australians face a loss in their income, they naturally spend less on retail products. However, after the initial lockdown passed, retail businesses saw a quick recovery to their pre-pandemic status. This was a welcome surprise, but it did entail significant structural changes. Ecommerce and other online services have taken the lead within the Australian economy, likely because they allow consumers to avoid the health risk of in-person purchases during the pandemic and provide additional convenience to those now working from home. This marks an essential acceleration in the adoption of digital services within Australia’s retail industry.
Australia's retail industry is in serious crisis. Watch the report of the biggest TV station of the country itself
Education industry as a side-effect
An unexpected side-effect of the pandemic was its impact on the education industry. Australia’s tertiary education industry relies on international students for a substantial portion of their income; however, many of these students have either been forced to return home or prevented from entering the country to resume their studies. In response to both this and lockdown measures that prevented domestic students from going to school, many schools have quickly built a comprehensive digital infrastructure to support remote learning. However, this form of education has not been widely accepted among students, so many have decided to delay returning to school or beginning school. This impact is another compounding effect, as the longer the pandemic continues, the fewer students schools will have.
These are just a few industries that the COVID-19 pandemic has significantly impacted, however as previously mentioned, the nature of the economy means that all sectors are in some way linked together. Only time will tell the lasting impact of this pandemic, but the current effects seem to indicate an accelerated technological adoption and a temporary reduction in revenue