Australia & New Zealand combined will see nominal GDP growth in the 2nd Q of 2021):
Australia & New Zealand, because of their remote location have weathered the COVID pandemic remarkably well.
Australia has seen just over 29,000 COVID cases & less than 1,000 deaths. New Zealand has seen less than 2,500 cases that have resulted in 26 deaths.
Australia’s economic relationship with China has seriously cooled down in the last 6 months, this issue is related to China’s South China Sea territorial claims that Australia is criticizing. This dispute will impact Australian mineral exports and could impact future mining related projects.
We do expect a gradual & steady economic upturn as we transition into 2nd half 2021 and the number of COVID-19 confirmed cases starts to significantly decline & travel restrictions are lifted.
COVID-19 has hindered CAPEX spending and delayed current construction projects in both countries. Australia and New Zealand in their two centuries of existence have never experienced an economic tsunami / earthquake of this scale. The Government of New Zealand is preparing to invest considerable funds on infrastructure / public works projects to minimize current and future unemployment.