The economic costs of “zero Covid-19”

What’s happened?

hile much of the global economy is bouncing back strongly from the pandemic and government-mandated shutdowns, Australia is a worrying exception. Covid-19 cases are rising sharply, its most populous states (accounting for over half of GDP) are back under lockdowns, and fears are growing of a double-dip recession. In recent years, Australia has been one of the world’s economic success stories. Two years ago, it marked three decades without a recession, the longest run of growth since at least the 1930s (when accurate records began). And though Australia’s economy bounced back relatively strongly from