Yesterday’s National Accounts show Australia’s economy is now larger than it was pre-COVID.
This is in contrast to all major advanced economies.
Real GDP increased 1.8% in the March quarter.
Between December 2019 and March 2021, Australia’s economy has grown by 0.8%.
By contrast: the USA’s economy contracted by 0.9%; Canada declined 1.7%; Japan by 2.3%; France by 4.7%; Germany by 5.0%; Italy by 6.4% and the UK by 8.7%.
In just over a year, Australia’s economy has recovered what it lost, faster than any recovery from any major downturn in recent history and nine months earlier than previously expected.
The pandemic is not over.
Globally, there are around half a million cases a day. The Euro area is back in recession.
However, Australia is now experiencing our strongest period of economic growth since 1968.
Furthermore, Australia was the first advanced economy to have more people employed than pre-COVID.
There are 46,000 more Australians in work in April 2021 than there were in March 2020.
There is much more to do to secure our recovery. However, our plan is working.
Australia’s economic recovery is something all Australians have contributed to and can be proud of.
Josh Frydenberg Treasurer
I do not believe it is a coincidence that we have a Bible believing PM. He became Prime Minister of Australia in circumstances that were clearly orchestrated by God. Note also a headline in World News after the PM appointed Josh Frydenberg his deputy and treasurer.
Australian Jewish community celebrates appointment of Josh Frydenberg—son of Holocaust survivor and synagogue attendee—as deputy Prime Minister and Treasurer.
Covid 19, unprecedented debt, and now even more significant is our relations with China have soured beyond recovery for the foreseeable future. Australia’s strong ties with the USA is a problem for the Chinese. Considering China is our biggest export partner (iron ore, coal, natural gas, barley, beef etc) and the biggest contributor to our tourism and education markets, this will have catastrophic consequences for our nation.
China’s relations with the USA were in steep decline prior to Covid. It- has now utterly squandered any remaining international goodwill with the emergence and its handling of coronavirus.
NATO Secretary General Jens Stoltenberg says he’s over China’s ‘bullying and coercion’, signalling a toughening of European security policy towards Beijing.
The UK, just like us, has reversed course on Huawei, easing the Chinese company out of its 5G network.
Japan, South Korea, Indonesia, Malaysia and most recently India have all been bullied by China and its blustering about building military bases in contested territory in the South China Sea.
Everywhere you look, countries are reconsidering their trade ties. Trade is what fuelled China’s rise. Less trade will cause its fall. Any hopes of a new US trade deal with China have been quashed.
‘I don’t think about that now,’ Trump recently told reporters aboard Air Force One. ‘They could have stopped the plague. They could have stopped it. They didn’t stop it.’
Lower trade with the US and its other top trading partners will deprive China of US dollars. China needs US dollars to buy its own imports.
This has extremely bearish implications for Australia. Think about it… China can’t buy our iron ore, coal and copper with yuan. It needs US dollars. Yet US dollars is what it’s going to earn less of in the years ahead.
Meanwhile, China’s state-directed banking system created a huge pile of yuan-denominated credit to keep the economy afloat. In the first six months of 2020, it created 12 trillion yuan in new bank debt! Even before the COVID crisis, between 2001 and 2019, China had printed more money than any other country in world history. Chinese authorities are far more concerned with reversing their economic implosion than they are about printing so much money it becomes next to useless. That’s why you’re seeing stories about an ‘economic recovery’ in China. All this money must go somewhere. But where? More ‘ghost cities’ and ‘bridges to nowhere’. The resources cool off that we saw in 2016-2017 (BHP $46 down to $17) will be nothing to what is coming. At present our resource stocks are at almost record highs, One reason is Brazil is the world’s second largest iron ore producer and the Covid virus infected 188 people at just one mine alone. The lock-downs there have benefited Australian miners greatly, but it is a temporary reprieve.
The drought has lifted off most States. Fortunately, the drought and floods mobilised Christians to repentance and prayer. I believe God answered those prayers just as He did to provide Scott Morrison as our Prime Minister against all the odds. It is interesting to see that the State that has moved furthermost away from God on issues such as abortion, euthanasia, abolishing RE in schools and introducing the diabolical “Safe Schools” programme is suffering the most from Covid19 cases and deaths.
The shaking has just started and Christians need to recognise we are in the “last days”. Persecution will only increase for those that stand up for God’s values. Regardless, God is in control and He will empower those of us that are submitted to doing His will. Make sure you are in step with Him, each day asking the Holy Spirit for His guidance, to enable God’s Kingdom to come where He has placed you at this late hour in earths history.