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Sydney Lockdown seen Slicing 0.1 off Australias GDP

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SYDNEY, June 28 Reuters A twoweek coronavirus lockdown in Sydney, Australias most populous city, will likely hit the countrys GDP by about A2 billion 1.5 billion while the slow nationwide vaccine rollout hangs heavily on the economic outlook.

Currently, around 18 million Australians, or around 70 of the population, are under some form of lockdown or coronavirusrelated restrictions as officials grapple with infections in almost every state or territory.

Australias vaccine rollout has been slowerthananticipated with only about a quarter of population receiving at least the first dose compared with more than 50 in the United States and Singapore and 66 in the United Kingdom.

The outbreak clearly highlights that until the vaccine rollout is completed the pandemic will remain a source of downside risk, Sean Langcake, principal economist at Oxford Economics, wrote in a note titled New COVID ripple will dent but not derail economy.

Langcake did not provide an estimate of the damage to the broader economy from the current lockdown in Sydney.

Morgan Stanley and AMP estimate a A2 billion hit to the economy from the twoweek Sydney lockdown, equal to about 0.1 of annual gross domestic product.

New South Wales state, of which Sydney is the capital city, represents around a third of Australias economic activity.

Australias A2 trillion economy rebounded sharply late last year after slipping into its first recession in three decades, helped by its early success in curbing the…

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