Introduction - Macroeconomics Article Analysis
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The following article has the title “Pandemic hasn't wounded the economy, but the boom won't last” is published in “The Sydney Morning Herald” on March 4, 2022. The author of the article is Ross Gittins who discussed the impact of the viral epidemic of the virus in the Australian economy.
In the following article, the author has discussed the economic condition of Australia and how much it's impacted due to the virus epidemic. Also, the role of government along with the RBI has been highlighted in the report. Furthermore, the current employment situation in the nation has also been covered by the author.
Impact on the economy
The impact of the pandemic has been very negative in the physical and financial health of the people but it has not affected the economy of the nation for a long time. According to the “national accounts” for a period of October to December, the statistics report of Australia has experienced a growing economy of 3.4 percent (Pham et al. 2021). In this economic enhancement, the federal government has a strong role which is spent huge in labourers’ income, breaks on special taxes, increasing the value of wages and providing huge incentives to the workers.
Role of Reserve Bank
Not just the national government but also the Reserve Bank has played a major role in improving the economy of the country by cutting the rates of interest close to nothing. Also, the Bank has purchased the bonds of the government which brought a big difference to enhance the overall economy of the nation and pushed the individuals to earn a living (Ghosh, 2020). As per the Reserve Bank, the economy rate of Australia will increase by 4 percent in this year which is similar to the growth rate the country has experienced in the year 2021.
Employment of the country
The number of employed workers in Australia has increased by 270,000 more than the number of employed workers in the last year which made it clear that the pandemic is not able to stop the individuals from earning a living (Lowe, 2020). This employment of the country has grown because of the high vacancies of the job in recent years.
In the article, the author has presented the information in a very well written manner for the readers which is very easy to read and understand the current condition of the Australian economy. There are no such weaknesses or limitations of this article but some points of this article should be discussed more briefly like what led to the improvement in the economy of the country in the recent year.
In the article, the economic condition of Australia has been highlighted by the author and it is discussed how the economy is impacted due to the viral outbreak. As it is determined through the article, that the economy has not impacted for a long time due to the viral epidemic, the growth rate of the economy in the country is increased by 4 percent every year which is more likely to be continued in future too.
Ghosh, S. (2020). Asymmetric impact of COVID-19 induced uncertainty on inbound Chinese tourists in Australia: insights from nonlinear ARDL model. Quantitative Finance and Economics, 4(2), 343-364. Retrieved from https://www.aimspress.com/fileOther/PDF/QFE/QFE-04-02-016.pdf, [Retrieved on 01.03.22]
Lowe, P. (2020). Responding to the Economic and Financial Impact of COVID-19. Speech at the Reserve Bank of Australia, Sydney, 19. Retrieved from https://www.rba.gov.au/speeches/2020/pdf/sp-gov-2020-03-19.pdf, [Retrieved on 01.03.22]
Pham, T. D., Dwyer, L., Su, J. J., & Ngo, T. (2021). COVID-19 impacts of inbound tourism on Australian economy. Annals of Tourism Research, 88, 103179. Retrieved from https://e-tarjome.com/storage/panel/fileuploads/2021-05-11/1620718495_E15375.pdf, [Retrieved on 01.03.22]