Tokyo, Japan, April 30, 2021 --(PR.com
)-- Businesses in Australia reported that profits, trading environments and hiring had all improved during the first quarter of this year as the country pulled itself out of the worst effects of the pandemic.
Business sentiment increased, reaching a level well above long running averages.
Analysts at JC Rothchild General attribute the heightened confidence to the strength of the economic recovery seen during the period from January to March.
Australia has been highly successful in its management of the pandemic and has managed to mostly contain its outbreak of COVID-19. Since the start of the pandemic, Australia has only had around 30,000 cases and less than 1,000 deaths. As a result, the Australian economy has been able to resume normal running sooner than many other developed economies that have been struggling with multiple waves of infection.
While other developed economies suffered their worst economic contractions ever, Australia experienced a much less severe contraction of only 2.5% last year. Economists at JC Rothchild General anticipate an expansion of around 4.5% this year as Australian consumers spend more due to pent up demand caused by COVID-19 restrictions.
“As with the recoveries for most countries, the success depends largely on the proper delivery of vaccines. Australia has managed their health crisis well and so far; their rollout of the vaccine has been efficient. This is reflected in the optimism of consumers and businesses who are keen to spend and hire,” said Mr. Akifumi Endo, Chief Finance Officer at JC Rothchild General.