"The strong rebound in GDP in the September quarter is most encouraging. Clearly the heavy dose of fiscal and monetary policy support was instrumental in the outcome and the signs so far are that, as the form of that support has begun to change since September, the economy is gradually building momentum of its own. Nevertheless, as the Reserve Bank noted yesterday, fiscal and monetary support will still be required for some time yet and continuing high levels of unemployment remains a major concern," Mr Innes Willox, Chief Executive of the national employer association Ai Group, said.
"The 2020 recession was a long time coming but fortunately has proved to be short-lived. That said, it also brought with it the sharpest fall in GDP on record and its scars will be with us for some time yet.
"The healthy GDP performance at the national level came despite a considerable drag from Victoria which experienced a further contraction in the three months from the start of July as the second COVID-19 wave accelerated and as activity was severely restricted. If the Victorian economy rebounds in the December quarter and the national economy reaps the full benefit of the opening of internal borders, we should be looking at further good news into the new year. This in turn should fuel the lift in consumer and business confidence that will be required to resume a path of self-sustaining growth," Mr Willox said.
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