Australia's economy could be no small beneficiary of an end to China's zero-Covid policy over the next two years, according to JPMorgan.
"China's shift toward an earlier reopening raises the question of potential implications for the Australian economy," JPMorgan's chief investment strategist Tom Kennedy said in a Saturday report.
The firm's note added that a full recovery in Australia's tourism will add 0.5 percentage points to its gross domestic product and the return of international students from China will add another 0.4 percentage points — amounting to nearly a full percentage point in the nation's economic growth.Covid-related travel restrictions in July last year, its short-term overseas arrivals are still a far cry from pre-pandemic levels.
In 2019, China accounted for 15.3% of all of Australia's inbound tourism, making it the largest source of short-term visitors, JPMorgan said. It added that the average Chinese tourist's spending was four times that of a tourist from New Zealand, the second-largest source of inbound tourists to Australia.
"While the duration adjusted spending numbers are less striking, real GDP is an aggregate concept and so the absence of Chinese tourism has been a notable headwind," he said.JPMorgan said it expects the pace of international student enrollments to accelerate this year., more than 253,000 international students arrived from China in from January to October in 2019. That year-to-date number fell to roughly 173,000 in October 2022.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China lifts quarantine for inbound travellers amid Covid spikeHundreds of millions have started returning to their hometowns ahead of Lunar New Year period to spend holidays with their families and relatives amid a surging wave of infections across the country.
Read more »
China reopens borders in final farewell to zero-COVIDTravellers began streaming across land and sea crossings from Hong Kong to mainland China on Sunday, many eager for long-awaited reunions, as Beijing opened borders that have been all but shut since the start of the COVID-19 pandemic.
Read more »
China reports two COVID deaths for Jan. 7China reported two new COVID-19 deaths in the mainland for Jan. 7, compared with three deaths a day earlier, the Chinese Center for Disease Control and Prevention said on Sunday.
Read more »
China reopens borders in final farewell to zero-COVIDChina had one of the world’s tightest COVID regimes and followed historic protests against a policy that included frequent testing, curbs on movement and mass lockdowns.
Read more »
Protesters clash with police at COVID antigen kit maker factory in China, videos showProtesters clashed with police in central China during a demonstration on Saturday by hundreds of people at a factory producing COVID-19 antigen kits, several videos posted to social media showed.
Read more »
China reopens borders to tourists after three years of Covid closureIt comes as the world's largest annual migration event, Lunar New Year, begins.
Read more »