FXStreet reports that Goldman Sachs economists are discussing the prospects for the Australian economy.

“Australia's gross domestic product is likely to fall 2% in the third quarter from the previous period, driven by weaker household consumption and construction activity. The economy is then expected to expand 1.8% in the fourth quarter as restrictions are relaxed more gradually than in the past.”

“Our base case is for the QE taper to proceed in September as scheduled (65% probability), but we continue to see a strong argument for the RBA to delay any (even if modest) withdrawal of policy support.” 

“Revisions resulted in it cutting its 2021 forecast in annual averaged terms by half a percentage point to 4.2%. In turn, it boosted its 2022 estimate by 0.4 percentage point to 4.2%. 

“Projects, based on the current pace, that the share of adults with two doses will rise from 30% currently to the government’s 70%-80% target by around mid-November.”