Covid 19 pandemic and horrendous bushfires of 2019/2020 have had a negative impact on the Australian economy. This is in terms of GDP growth, inflation, and unemployment. The economy has been hard hit since July 2019. By July 2019, the Australian GDP had grown by 0.8%. The GDP was worth 1392.70 billion US dollars. This shrank following a 0.3% drop in the first quarter of 2020. In the second quarter, the GDP growth fell by 7.0% (Trading Economics, 2020). This confirms the large hit of the COVID 19 pandemic and the 2019/2020 bushfires on the Australian GDP.
The Australian inflation rate has been impacted by the 2019/2020 crisis. In the first quarter of 2020, the annual inflation rate rose to 2.2%. This was from 1.8% of the fourth quarter (Australian Bureau of Statistics, 2020). This was the highest inflation rate since 2014. The Australian unemployment rate was also hard hit by the pandemic and the bushfires. As of July 2019, unemployment was 5.3%. The rate rose to 7.4% as of June 2020 (Trading Economics, 2020). Based on this data, it is clear that Covid 19 pandemic and 2019/2020 bushfires have had a negative impact on the Australian economy. The two events have slowed down GDP growth, the inflation rate rose, ad more jobs were lost.
Australian Bureau of Statistics (2020). Price Indexes and Inflation. Retrieved from https://www.abs.gov.au/price-indexes-and-inflation
Trading Economics (2020). Australia GDP. Retrieved from https://tradingeconomics.com/australia/gdp
Trading Economics (2020). Australia Unemployment Rate. Retrieved from https://tradingeconomics.com/australia/unemployment-rate