Likely contraction of Aussie economy in Q3

Sharp turnaround: Shoppers walking past stores on Degraves Street in Melbourne. With about 86% of Australia’s adult population now vaccinated and most restrictions eased, a swift recovery is anticipated on higher consumer spending. — Bloomberg

BENGALURU: Australia’s economy likely contracted in the third quarter (Q3) as fresh lockdowns weighed on consumer spending and investments, but the extent of the fall was milder than the historic recession recorded last year, according to a Reuters poll.

Despite Australia’s success last year in containing the Covid-19 virus, fresh flare ups and the stay-at-home rule imposed this year severely dented economic activity leading to job cuts and calls for a ramped-up vaccination drive.