In the latest client note, Deutsche Bank Economist Phil Odanaghoe argued that the lockdown re-imposed in the Melbourne city is unlikely to have a major impact on the Australian economic recovery.
Key quotes
“Our initial sense is that the re-opening reversal stemming from the lockdown will see the economy surrender some – but not all – of the better than expected trajectory.
Crucially, the shutdown will close cross-border trade and movement between Victoria and New South Wales, which collectively account for more than half of Australia’s economy and population.
The two states, which are separated by the Murray River and its lucrative farming districts, had previously remained open to each other even as other states closed their domestic borders.”
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