The coronavirus pandemic continues to be the major factor affecting the economy and small business market in Australia. Most forecasters are predicting a continuing recovery on the back of high vaccination rates, allowing the Australian economy to open up.
In particular the states of Victoria and New South Wales have significant upside potential, after long periods of lockdown in 2021. Other states and territories will look to continue with what have been strengthening economies and small business markets over the last 12 months.
WORLD AND AUSTRALIAN ECONOMIES
OECD figures show that global economic growth in 2021 rebounded 5.6% after the initial impacts of the COVID-19 in 2020. It predicts a robust 4.5% growth in 2022 before moderating to 3.2% in 2023.
In Australia, GDP grew by an estimated 3.8% in 2021. There is projected growth of 4.1% in 2022. In short, the Australian economy is in a solid recovery phase overall. However, the recovery is uneven in its distribution between different states and industry sectors of the economy.