Can the additional stimulus help in faster revival of the economy?
Team Veye | 15-Feb-2021
It would come as a surprise to many that US consumer sentiment ebbed in February despite additional stimulus hopes.
US House committees have approved parts of the $1.9 trillion coronavirus relief plan. Although, the Senate may seek some changes before putting it to legislation. President Biden has urged Congress to pass the American Rescue Plan and deliver much-needed relief that could stimulate growth and economic recovery.
Australia had been comparatively successful in curbing the pandemic. It had opened most of the sectors including domestic travelling. These things had induced consumer spending and resumption of a majority of the activities.
Earlier, The Australian Government had invested $363 million to support research and development to find successful vaccines and treatments to stop the spread of COVID-19. It further invested more than $3.3 billion through 4 separate agreements for the supply of COVID-19 vaccines if they are proved to be safe and effective. These agreements will strengthen Australia's position to access safe and effective vaccines when they become available.
Australia's first shipment of the Pfizer coronavirus vaccine is expected to be coming in the next week or so. Australia has an agreement with Pfizer for it to provide a total of 3 million doses over the months of April, May, and June.
Because of Australia’s successful suppression of the coronavirus pandemic and economic policies, its economy is in better shape now. In December, the unemployment rate had fallen to 6.6%. The underemployment rate also was down to 8.5% signaling its return to growth.
A recent poll of 34 economists forecasts Australia’s gross domestic product would expand 3.5% this year. This was the fastest since polling began for the year in April 2019, although slower than the government’s growth projection of 4.5% after contracting 3.0% last year.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.