Around six months ago it looked as if the small business market in Australia was recovering well from the initial impact of COVID-19. The Australian economy had gained momentum and unemployment was down – then came the Delta strain of the virus. This has led to vastly differing business conditions in each state of Australia, dependent upon the level of “Delta impact”.
Australian Economy After Delta Strain
The Australian economy was well into recovery mode after the initial impact of the Coronavirus. GDP had increased by 0.7% in the June quarter and by almost 10% over the 12 months leading up to June. Unemployment was below 5%, with business confidence and investment increasing.
Then came the Delta strain of the virus, causing restrictions on the New South Wales and Victorian economies, which has in turn caused a stall to the economic recovery in Australia. The RBA is now forecasting a decline in GDP and increase in unemployment in the next few months. However, it is hoped that the Delta setback will be only short term.
In the meantime there are vastly different small business conditions in each state of Australia, depending on the level of Delta impact.
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