There are a number of reasons for optimism in Australia in 2021. Season factor could potentially slow the spread of the virus as the country has entered the summer period along with the state border control now largely reopened.  In Australia because of our smaller population compared to the US there is a correlation between population size and success in controlling COVID- 19. Finally, we will all learn to live with the COVID- 19 more easily once vaccines are available to everyone.

Australia’s economic recovery in 2021, is still likely to have a lot of volatility and the country is expected to continue to suffer from the delay of opening international borders, for some time yet. At this stage, Australia is in a better position than that of many other countries. In the US, we have seen the victory of Joe Biden and numerous news reports of potential greatly effective vaccines against COVID-19 which has significantly reduced the uncertainty over the global position for this year. This will mean positive for all markets, including Australia. Short term, for the next three to six months, some challenges remain, being the impact on the US and European economies of second coronavirus waves this winter, plus delayed and possibly smaller stimulus packages from Governments

In relation to the positive news about vaccines, undertaking the manufacturing and distributing on a global scale is without precedent and a huge job, production plans currently state that it should be possible to immunise a substantial amount of the world’s populace by next year.  Stock markets are forward looking and good news on the vaccination front has given investors hope. Under a best-case scenario, the global economy could embark on a broader, more sustainable recovery from the middle of next year.

If you require help with understanding what’s best for you, the team at Superannuation Advice Australia can help.  Contact us today!