AUD GBP Nears Recent Highs Ahead of Inflation Data

GBP AUD Lower as Australia Delays Border Reopening

The AUD GBP exchange rate was testing recent highs near the 0.5450 level as the latest inflation data was set to be released. Analysts are expecting a dip from 3.8% to 3.1% as the latest lockdowns have a deflationary effect on the economy.

The AUD GBP exchange rate is trading at 0.5440 and Wednesday will bring the UK Autumn budget from Rishi Sunak.

Australian economy struggles against its peers in new review

The Independent Australia Ranking on Economic Management (IAREM) for 2021 has shown that Ireland is leading the world and Australia is still languishing outside the top 20.

Ireland’s government has delivered budget surpluses in 2018 and 2019 and reduced the nation’s debt from 120% of GDP in 2013 to under 60% last year.

Ireland reached the top primarily on its economic growth, however, its increase in GDP at an annual rate of 21.6% in this year’s second quarter was among the global leaders. Since 2012, GDP in the country has grown by 86%. That is the strongest of all developed economies, including China.

“Expect Australia’s gross domestic product (GDP) to fall by three percent or more in the September quarter due to more than half the population being locked-down in Sydney, Melbourne and Canberra.”

Over the same period GDP in the USA and New Zealand grew by less than 30%. In Germany, the Netherlands, and Switzerland growth was below 10%.

Australia was among several economies that actually went backwards over the period, including Australia, whose GDP declined by almost 14% from 2012 to 2020.

Australia’s economy was ranked at 23 in the latest list from the IAREM.

Victoria restrictions lift next month, ‘vaccinated economy’ to stay into 2022

Melbourne will go from being the world’s most locked-down city to being almost entirely free of restrictions next month, but Victoria’s premier, Daniel Andrews, has warned that the “vaccinated economy” will remain into 2022.

Victoria is expected to hit their 80% vaccination rate for adults, a week ahead of the forecast, and should hit the 90% level by 24th November.

“There is a fundamental agreement that we have reached with the Victorian community. We asked you to get vaccinated. You have done that in record time and record numbers,” Andrews said.

“That means we have to open the place up and we have to have a series of rules, we have to have settings, that are the lightest touch possible, the simplest, the most easily understood, that are as close to normal life as possible. That is what we committed to and that is what we are going to deliver.”

The news will please Aussie dollar bulls as the country has struggled with a tough approach.

However, Andrews also added that the unvaccinated would be banned from attending anything from a bookshop to a pub to a football match until at least 2023. That should not affect the economy if they are approaching the figures they claim.

 

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