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SYDNEY — Australia’s economy was already slowing in the June quarter before wide-spread coronavirus lockdowns slammed everything into reverse, leaving the country in a desperate race to vaccinate in the hope of opening up to recovery by Christmas.
Figures from the Australian Bureau of Statistics out on Wednesday showed gross domestic product (GDP) rose 0.7% in the June quarter. That was a step down from 1.9% in the March quarter, but topped forecasts of 0.5% and avoided analysts’ worst fears of a negative outcome.
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Annual growth was the fastest in modern history at 9.6%, but only because the pandemic caused a severe contraction in the June quarter last year, which was dropping from the calculation.
That painful pattern was playing out again as strict stay-at-home rules in Sydney, Melbourne and Canberra are set to see the economy shrink 2-3% or more this quarter.
The conservative government of Prime Minster Scott Morrison is pinning its hopes on a vaccination roll out that is gathering steam after a ham-fisted start.
Current projections are the country could reach 70% of adults vaccinated some time in October, which would allow for a relaxation of rules. Mass lockdowns could be abandoned altogether at 80%, which is tipped for November.
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“Assuming the vaccination rollout continues at its current pace it is likely the Eastern states will begin to re-open in the December quarter, and this will enable the economy to…
