In addition, there have been disruptions to the construction sector and some investment plans have been delayed. The exact magnitude of the economic contraction in the September quarter remains to be determined but it is likely to be at least 2 per cent, and possibly significantly larger than this. This is a major setback, but it is likely to be only temporary.
We expect the economy to be growing again in the December quarter, with the recovery continuing into 2022. The key drivers here are the increasing rate of vaccination and the easing of restrictions on economic activity. Australia has made significant progress on the vaccination front over the past month and further progress is expected over the weeks ahead.