The Lowy Institute Analysis "The Costs of Covid: Australia's Economic Prospects in a Wounded World" examines Australia's economic prospects after the pandemic. The report finds that while Australia has emerged from the pandemic sooner and at less economic cost than expected, it has also experienced higher unemployment and elevated debt. The global economy and demand are expected to recover slowly and unevenly, with major advanced economies increasing government debt and central banks driving interest rates to rock bottom. Additionally, the US-China quarrel has become more intense, and Australia's relationship with China has deteriorated. The report concludes that Australia will need to navigate these challenges to achieve sustainable economic growth.
