Jul 06 2020
Leading industry research company IBISWorld has published an in-depth breakdown of how the COVID-19 pandemic is affecting every subdivision in the economies of Australia and New Zealand. This report, compiled by a team of senior industry analysts, classifies the level of disruption for each subdivision, and provides analysis on the key factors that have determined performance over 2019-20, and will affect each subdivision in 2020-21 and beyond.
The worsening COVID-19 outbreak during 2020 has had a significant and growing influence on domestic and international economic activity. Australia and New Zealand have been relatively successful in containing COVID-19 compared with other regions. However, supply chain disruptions, and ongoing travel and tourism restrictions continue to hinder Australia and New Zealand. Overall, the virus’ impact on economic activity has been highly damaging, leading to the first technical recession in Australia since 1991-92.
‘IBISWorld has classified the degree of impact for each subdivision as moderate, high or very high. The level of disruption depends on the degree of exposure to international trade, and the impact on business and consumer confidence,’ said Senior Industry Analyst Matthew Reeves.
COVID-19 has negative affected the Australian and New Zealand economies by disrupting consumer demand and business supply. Consumer sentiment has deteriorated significantly, weakening demand across most industries. Households have scaled back discretionary spending due to fears relating to rising unemployment and economic uncertainty. Many businesses have abandoned or postponed investment in new productive capacity to retain cash and provide a liquidity buffer to survive the COVID-19 pandemic. Supply chain disruptions in Australia and New Zealand, and in foreign markets have also hindered business activity, further dampening economic growth.
Some subdivisions are expected to outperform during the COVID-19 pandemic. Social distancing has pushed many consumers to online channels for shopping, communication, food purchases and working arrangements. This trend has driven a surge in sectors such as online shopping, postal services, and data storage services. Some industries in the Mining subdivision have benefited from declining operating costs associated with lower fuel prices. Other industries have suffered direct negative effects, but have also seen positive factors, such as rising demand for repairs and maintenance services replacing new purchases.
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For more information, to obtain industry reports or to arrange an interview with an analyst, please contact:
Strategic Media Advisor – IBISWorld Pty Ltd
Tel: 03 9906 3647