Can the additional stimulus help in faster revival of the economy?

Team Veye | 15-Feb-2021 faster revival of the economy

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.

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