Battered by coronavirus, Australia’s ‘lucky’ economy faces long road to recovery

The country has been relatively successful in containing the spread of the virus, though it is battling a recent spike in infections in Victoria state

Economic growth drivers such as tourism, education and immigration have all taken massive hits since Australia shut its borders to the rest of the world

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People are seen walking in front of the Sydney Opera House and Sydney Harbour Bridge earlier this month. Photo: Reuters

Published: 10:24am, 29 Jun 2020Updated: 10:24am, 29 Jun 2020

Coronavirus has done to Australia what even the global financial crisis could not: abruptly end a record growth run and help trigger a deep recession from which the country will take time to recover.

While the country has been relatively successful in containing the spread of the pandemic, with around 7,700 cases and 104 deaths, the cure of shutting out the rest of the world means massive hits to three key growth drivers – tourism, education and immigration.

A recent spike in infections in Victoria state has also threatened plans to remove the bulk of the country’s social distancing restrictions by the end of July, with fears that the fresh outbreak could spread to neighbouring New South Wales and South Australia during the upcoming winter school holidays.

Fiona Gulin was 18 when the last recession hit Australia in the early 1990s. Back then, she managed to keep a part-time job at a music publication, before moving on to full-time work and a lucrative career in the entertainment industry.

The sun rises behind the central business district in Sydney on June 29. Photo: EPA

This time, she hasn’t been so lucky.