Prior to Omicron, the economy had established strong positive momentum, bouncing back quickly following the easing of the Delta restrictions. This momentum wasn't sustained into the new year, with Omicron leading to many people having to isolate, interrupting supply chains and affecting spending as people sought to limit their activities. Yet, once again, the resilience of the economy has been on display.
Australians have adjusted and adapted, and we still expect GDP to grow in the March quarter, although only modestly. The worst of the disruptive economic effects from Omicron now appear to be behind us, with supply chain and workforce management problems gradually being addressed. As case numbers trend lower, we expect a strong bounce-back over the months ahead.