National push on jab rates; city exodus

National target for vaccination rates

National Cabinet has agreed on a 70 per cent full adult vaccination target rate to reduce Covid-19 lockdowns and allow the capped entry of students and economic visa holders. Under the threshold, inbound passenger caps would be restored for unvaccinated returning travellers, with larger caps for vaccinated returning travellers. With an 80 per cent vaccination rate, caps would be abolished for returning vaccinated Australians, and a travel bubble established with specific countries. Also this week, Federal Treasury analysis projected that lockdowns would unlikely be necessary under a 70 per cent vaccination rate, reducing the expected economic cost of Covid-19 management to around $200 million a week.

Population exodus from Sydney, Melbourne

Australia’s two largest capital cities have continued to lose population during Covid-19, according to internal migration figures for the March 2021 quarter. Melbourne recorded a net loss of 8,300 people and Sydney 8,200 people for the quarter, while Brisbane had a net gain of 3,300. Quarterly preliminary estimates from the Australian Bureau of Statistics reveal that Queensland gained a net 7,000 people, while Victoria and NSW lost 4,900 and 4,500 people respectively. Total capital city net losses of 11,800 people were the highest quarterly losses on record.

Retail trade suffers under lockdowns

Retail turnover fell 1.8 per cent, seasonally adjusted, in June as states imposed lockdowns to quell Covid-19 outbreaks, according to ABS figures. Hospitality, clothing and department stores registered the biggest falls, with traders hardest hit in Victoria (four per cent fall), NSW (two per cent fall) and Queensland (0.9 per cent drop). For the June quarter, however, retail turnover rose 0.8 per cent, with few protracted lockdowns in April and May. Meanwhile, the number of payroll jobs in Australia fell by 2.4 per cent in the first two weeks of July, headed by a 4.4 per cent drop in New South Wales.

Legislation proposes wider powers for export agency

Legislation introduced into Federal Parliament this week would expand the powers and reach of Australia’s export credit agency, Export Finance Australia. Under the legislation, the agency would have a new equity investment power and be able to provide standalone overseas infrastructure guarantees, including in the Pacific. The bill supports the development of export-linked sectors, including the development of critical minerals projects with an export focus.

Export surplus jumps again

Australia’s export performance continues to bound ahead, with the monthly surplus in international trade in goods and services breaking the $10 billion mark for June. ABS figures show a seasonally-adjusted surplus of almost $10.5 billion for June, with a four per cent increase in goods and services exports against a one per cent rise in imports. While monthly goods exports and imports have surpassed pre-Covid 19 levels, monthly international trade in services remain around half that of levels 18 months ago.