![\"\"](\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2021\/03\/pexels-photo-68704-300x193.jpeg\")
After a tumultuous 2020 for global economies,\u00a0hopes are high that 2021 will be a better time for all. One country\u2019s economy that is expected to\u00a0recover well is Australia.<\/p>\nAfter a tumultuous 2020 for global economies,\u00a0hopes are high that 2021 will be a better time for all. One country\u2019s economy that is expected to\u00a0recover well is Australia.<\/p>\n
The country has fared well during the pandemic, containing the infection\u00a0well enough for life to return to some semblance of normal in large parts of the country.\u00a0With the vaccine rollout\u00a0underway<\/a>, the country is well-positioned to come back from a tough 12 months.<\/p>\n But what does the economy look like now? How are businesses\u00a0set to perform this year?<\/p>\n The signs of a bounce back<\/strong><\/p>\n At\u00a0the height of the coronavirus outbreak in Australia, it was predicted\u00a0by Deloitte\u00a0that a second wave\u00a0could cost the\u00a0country $100 billion in lost income<\/a>.\u00a0By September\u00a02020,\u00a0Australia was in a recession<\/a>, which came as a blow after 30 years of consistent economic growth.<\/p>\n But\u00a0as time has gone on, things have changed. According to Deloitte\u2019s\u00a0Access Economics\u00a0growth outlook for the coming months, around 300,000 people are expected to re-join the workforce\u00a0and there is expected to be 400,000 new jobs by the end of 2022.\u00a0Additionally, unemployment is expected to drop below 6% by 2023.<\/p>\n For businesses, this is good news.\u00a0More\u00a0employment means there will be more household spending\u00a0and business investment. In fact, business investment is expected to grow by 3% in 2021.<\/p>\n However, as these green shoots of recovery appear, business owners will understandably be wary.\u00a0Industries will begin to improve, with\u00a0Deloitte predicting that\u00a0accommodation and food services and transport and storage\u00a0seeing the biggest improvements. But those working in these and other sectors are\u00a0still\u00a0recovering from being in a\u00a0recession\u00a0which is only technically over<\/a>,\u00a0and\u00a0wages\u00a0aren\u2019t likely to rise for a while.<\/p>\n Despite this, the country is making headway and economic growth is on an upward trajectory compared to other countries.<\/p>\n Who are Australia\u2019s largest trade partners?\u00a0<\/strong><\/p>\n As well as Australia\u2019s GDP, trade is a huge factor\u00a0to consider when looking at income for the country. Some of its largest trade partners are\u00a0Japan, the US, and Korea. However,\u00a0China is by far Australia\u2019s largest trading partner,\u00a0worth almost $240 billion.<\/p>\n Recently, there has been growing tensions between the two nations<\/a>, with Australia accusing china of\u00a0undermining the free trade agreement. The agreement was signed in 2015, reducing tariffs. But in May 2020,\u00a0China imposed sanctions on Australian goods and added tariffs of\u00a0up to 200% on Australian wine in response to what\u00a0China claims were illegal trade practices.<\/p>\n Like any major\u00a0country,\u00a0Australia\u2019s trade is crucial for supporting jobs and the local economy.\u00a0As a result of recent\u00a0tensions with China,\u00a0it\u2019s likely that forecasters will be keeping an eye on the forex markets<\/a>\u00a0as these have a significant impact on the cost of imports and exports.<\/p>\n How will the\u00a0global economy fare?\u00a0<\/strong><\/p>\n Australia is among several countries expected to see improvements in the coming year.\u00a0According to the latest world economic outlook growth\u00a0projections<\/a>, the\u00a0global economy is projected to grow 5.5%\u00a0in 2021 and 4.2%\u00a0in 2022. The 2021 forecast\u00a0has been revised up by\u00a00.3%, largely\u00a0as a result of\u00a0the\u00a0vaccine\u00a0rollout across the world.<\/p>\n If Australia continues as projected, there could be signs of steady growth for the country in the coming year.<\/p>\n","protected":false},"excerpt":{"rendered":" After a tumultuous 2020 for global economies,\u00a0hopes are high that 2021 will be a better time for all. One country\u2019s economy that is expected to\u00a0recover well is Australia. The country has fared well during the pandemic, containing the infection\u00a0well enough for life to return to some semblance of normal in large parts of the country.\u00a0With… How Are Australian Businesses Expected to Perform in 2021?<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":8865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-8864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=8864"}],"version-history":[{"count":1,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8864\/revisions"}],"predecessor-version":[{"id":8866,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/8864\/revisions\/8866"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/8865"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=8864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=8864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=8864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}