FXStreet reports that Paul Bloxham, HSBC Chief Economist for Australia, said that Australia’s economy is set to stagnate in the second half of the year amid the rapid of highly contagious Delta covid strain. 

“Even before the Sydney outbreak we had expected Australia’s growth to slow from its recent rapid growth rates, as population growth has stalled due to the closed border and as the fiscal impulse fades.” 

“Expect gross domestic product will drop 0.3% in the current quarter and rise 0.3% in the final three months.”

“The economy will then bounce back next year, though “the other headwinds to growth in 2022, including the only slowly re-opening border and tensions with China, are expected to remain.”