Economic growth in Australia forecast to hit 3.6% in 2022

17 Jan 2022

Australia’s economy is “match fit” to combat the pandemic, according to the quarterly Business Outlook report by Deloitte Access Economics published on Monday.

The report forecasts 3.6% growth this year for Australia’s economy, bolstered by robust growth in New South Wales and the Northern Territory, with growth of 5.2% and 6.9% respectively. 

Deloitte partner, Chris Richardson said the grapple between Covid variants and vaccines will continue, and those economies with the highest triple vaccination rates will show the year’s strongest growth. 

“Australia is now much more match fit for fighting COVID: we’re well vaccinated, we’ve got the hang of juggling lockdowns and other COVID challenges, and we’re cashed up with dollars left over from when the pandemic meant that money couldn’t readily be spent,” he said. 

“That combination spells resilience and recovery.”

The Deloitte findings are in the centre of the economic spectrum, reports Business Insider, more prudent than the central bank’s 4% GDP growth predicted by the Reserve Bank of Australia for Q3 and 5.5% in Q4.

At the beginning of the year, the average forecast among the country’s leading market economists was for GDP growth around the 3.75% mark to June, and 5% to December.

However, the central bank is expected to adapt its forecast after a February meeting to account for the rapid spread of the Omicron variant.

Federal Treasurer Josh Frydenberg said of the report at a press conference on Monday: “Deloitte reminds us that we are still in a pandemic and that COVID-19 will continue to pose a threat to Australia’s economic recovery.” 

Whereas Shadow Treasurer Jim Chalmers commented: “Today’s Deloitte Access Economics Business Outlook is yet another important reminder that mismanaging the pandemic means mismanaging the economy,” he said.