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US Macroeconomics A Speech Video
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JavaScript is currently disabled. This website is best viewed with JavaScript enabled, interactive content that requires JavaScript will not be available. Philip Lowe Governor. Canberra — 5 February My colleagues and Click welcome this opportunity to once again appear before this Committee. Given the special hearing that was held in December, I thought it would be most useful to focus my introductory remarks on our updated economic outlook and the conclusions of the Reserve Bank Board meeting earlier this week.
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In terms of the economic outlook, I will start with the global economy, where there has been both negative and positive news US Macroeconomics A Speech. On the negative side, renewed outbreaks of the virus late last year have interrupted the economic recoveries in many countries. This has been another reminder that a strong and durable economic recovery requires the virus to be contained. The first is there has been a strong rebound in global trade in goods — as people have switched from consuming services to goods, production and international trade in goods has picked up.
This, together with the continuing strong recovery of the Chinese economy, has boosted many commodity prices and Australia's terms of trade.
The more important piece of positive news is the development of vaccines. These vaccines hold out the prospect of restrictions being eased and many activities returning close to their pre-pandemic normal. The result is a more positive outlook for the global economy and a lessening of some of the downside risks.
Even so, it is prudent to be prepared here further setbacks — the rollout of vaccines faces challenges and there are also other more conventional risks to the global economy. The downturn in Australia was not as deep as we had feared and the recovery started earlier and has been stronger than we were expecting.]
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