Dec 2021 – Jan 2022 Economic Update “Roaring Twenties”

As calendar year 2021 draws to a close and we look to put the pandemic behind us, Omicron has emerged to test political nerves. Concerns over the Omicron variant are growing but Australia’s impressively high vaccination rate and strong monetary and fiscal policy support have helped set us up for a positive 2022. Last month we suggested Central Banks were ‘Shifting Gears’ and getting ready to move on interest rates yet I have been surprised at the speed in which policy makers have shifted particularly in the US. Beyond the Pandemic, economies have rebounded strongly, supported by high savings levels and unprecedented government support. Looking into 2022 and beyond, there are many exciting things happening. The pandemic has been a circuit breaker required to shift political and individual thinking towards more sustainable economics, a low carbon future, and working remotely. New technologies like 5G are coming and this will help with the next industrial and digital revolution, could we see a repeat of the ‘Roaring Twenties’?