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Lockdowns cause Australian economy to shrink

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A diver dressed as Santa Claus swims behind a sea turtle at SEA LIFE Sydney Aquarium to mark the countdown to Christmas and the start of the holiday season, in Sydney, Australia, December 1, 2021. Loren Elliott, Reuters" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/reuters/12/01/20211201_australia.jpg"/><figcaption>A diver dressed as Santa Claus swims behind a sea turtle at SEA LIFE Sydney Aquarium to mark the countdown to Christmas and the start of the holiday season, in Sydney, Australia, December 1, 2021. <em>Loren Elliott, Reuters</em></figcaption></figure></div><p>SYDNEY, Australia - Lockdowns and border controls shrank Australia&#x27;s economy by 1.9 percent in the third quarter, official statistics showed Wednesday, a decline more modest than expected but worse than in many other wealthy nations.</p><p>The Australian Bureau of Statistics said the quarterly downturn -- the first since it contracted at the start of the pandemic in the first half of 2020 -- was due to &quot;extended lockdowns&quot; in the country&#x27;s most populous states.</p><p>The downturn was out of step with other major economies such as Canada, India, Japan and the United States -- which all saw growth in the same period.</p><p>Sydney, Melbourne and Canberra were all locked down for chunks of the quarter, causing households to spend dramatically less on services. </p><p>There was a 21 percent drop in spending on hotels, cafes and restaurants and a 40 percent drop in spending on transport.</p><p>Economists had forecast growth would drop around 2.8 percent, but increased exports appear to have come to the rescue -- buoyed by high coal and gas prices.</p><p>The economy is expected to bounce back in the final quarter of the year, but Wednesday&#x27;s figures will further raise local concern about the impact of the Omicron variant.</p><p>Moody&#x27;s Investor Service said the strain &quot;poses new risks to the global economic growth and inflation outlook&quot;.</p><p>Australia is among the countries that have tightened travel restrictions as a result of the strain.</p><p>Eight-seven percent of Australians over 16 years old have been fully vaccinated.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/overseas/11/21/21/thousands-rally-against-covid-19-curbs-in-austria-australia">Melbourne to ease world&#x27;s longest COVID-19 lockdowns as vaccinations rise</a></li>	<li><a href="https://news.abs-cbn.com/overseas/10/17/21/melbourne-to-ease-worlds-longest-covid-19-lockdowns">Thousands rally against COVID-19 restrictions in Austria, Australia</a></li></ul><p>RELATED VIDEO: </p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1846912" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

Lockdowns and border controls shrank Australia's economy by 1.9 percent in the third quarter, official statistics showed Wednesday, a decline more modest than expected but worse than in many other wealthy nations.