Daily Commentary BY THE CURVE TEAM –

Covid Continues to Impede

27th of April, 2021

Although it is less pervasive, Covid continues to hamper the economic recovery.

For Australia, uncertainty is the key factor holding the economy back. WA’s three-day lockdown over the weekend, which ended yesterday, is a key example.

Business and individual travel plans still have to factor the potential for a covid outbreak. Positively though, it is clear that there is confidence that the outbreaks will prove temporary.

The extremely strong economic data, especially business and consumer confidence, is testament to this. Covid overseas is a larger challenge.

Record high Covid cases in India has led to certain countries banning Indians from arriving. This does not bode well for the reopening of international borders, which is considered the next key development for economic activity to resemble pre Covid levels.

Even without international borders being open, the domestic economic recovery continues to power on. Iron ore prices have rocketed up as China’s recovery remains very strong.

Rents across the country have also recovered very strongly after being hampered severely last year as Covid struck.

Josh Stewart

Associate - Money Markets