Fresh lockdowns in some Australian cities and other areas cover just under half the population.
CBA note (comment via Reuters report):
- "Lockdowns have a very large and immediate negative impact on spending and that means less GDP"
However, CBA note that
- incomes are still supported by government payments
- less spending translated into more savings, which would be spent once the lockdowns were over
- partial drawdown of savings will be a tailwind on household consumption in 2022
- "If the lockdowns end as scheduled then the damage on the macro economy will be minimal and the economic outlook will remain strong"
I'm not sure about the ongoing government income support ... the extra measure introduced over the pandemic have largely been removed.
