Thankfully there's people who know what they're talking about so we can laugh at you uneducated ALP shills...
INTERNATIONAL MONETARY FUND2021 ARTICLE IV CONSULTATION—PRESS RELEASE;
STAFF REPORT; AND STATEMENT BY THE EXECUTIVE
DIRECTOR FOR AUSTRALIA
Australia’s economy has weathered the pandemic comparatively well.
Underpinned by sound
macroeconomic fundamentals, large-scale fiscal and monetary policy support helped lift the
economy out of its first recession in three decades in the wake of the initial COVID-19 waves
in 2020. Economic activity recovered to well above pre-pandemic levels by the second quarter
of 2021, faster than in most other advanced economies, with adverse distributional
consequences remaining contained. New outbreaks related to the Delta variant since June
2021 have posed new challenges, with a sizable loss in economic activity in the third quarter
of 2021 and some regions, sectors, and workers disproportionately affected.
Australian banks have remained liquid and well-capitalized, and household and corporate
balance sheets proved resilient. Surging house prices have raised concerns around
affordability and financial vulnerabilities, and the authorities have tightened macroprudential
policy.
Quickly rising vaccination rates offer a pathway to a new normal as the country gradually lifts
restrictions and reopens its borders. Accommodative fiscal and monetary policies should
soften the near-term economic impact and lay the foundation for post-lockdown recovery, with
economic growth expected at 3.5 and 4.1 percent in 2021 and 2022, respectively.
Executive Board Assessment2
Executive Directors agreed that Australia’s sound pre-crisis macroeconomic fundamentals and
effective policy response helped cushion the pandemic’s impact and have supported the
recovery. Directors encouraged accommodative and agile macroeconomic policies in the near
term given the downside risks and uncertainty, complemented with structural reforms to boost
productivity to lay the foundation for a sustainable, inclusive, and green recovery.
Directors commended the strong fiscal support provided in the context of the pandemic and
noted that Australia continues to have substantial fiscal space. They supported further
stimulus should downside risks materialize and stressed the need to ensure adequate support
to vulnerable workers and businesses, including through active labor market policies. They
generally encouraged tax reforms to gain efficiency, with a few Directors highlighting the case
for rebalancing the tax system away from direct taxes towards indirect taxes
1AUSEA2021001 (1).pdf
