AUS
NZ
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Highlights
- Australia’s retail sales have declined for a third consecutive month in August.
- New South Wales is the worst-hit region in terms of retail sales decline.
- Experts fear yet another recession in the country
Guess what is the economic toll of the third wave of the COVID-19 pandemic on the retail sector? AU$1.9 billion a month. Yes, the monthly retail sales in Australia have shrunk by AU$1.9 a month, after three consecutive months of decline due to lockdowns imposed to battle COVID-19.
The retail trade for the month of August 2021 stood at AU$29.28 billion – down 6% from AU$31.16 billion in the month of May, when the third wave had not crippled the Australian economy.
As the cases increased in May end, the country imposed lockdowns in the month of June to contain the spread of the virus. While the impact of curbs is questionable with fresh cases still at peak, it did have severe economic ramifications.
Since the lockdown has been imposed, retail sales in Australia have declined for three consecutive months on a sequential basis – 1.8% in June, 2.7% in July and 1.7% in August.
Some of the worst-hit sectors like department stores, clothing, footwear, personal accessory retailing and household goods retailing are witnessing retail sales at a level last seen in April 2020 – at the peak of COVID-19-induced recession.
Ben James, Director of Quarterly Economy Wide Surveys, said: “Retail turnover continues to be negatively impacted by lockdown restrictions, with each of the eastern mainland states experiencing falls in line with their respective level of restrictions. In direct contrast, states with no lockdowns performed well with Western Australia and South Australia enjoying strong rises as physical stores were open for trade.”
The worst-hit region in terms of retail sales decline has been Australia’s economic powerhouse – New South Wales (NSW). Experts fear that the ongoing wave of lockdowns in the country may lead to second recession in the country in as many years.
