As the U.K, Europe and U.S. dare to dream about reopening and restoring their pandemic-ravaged economies, the theory that pent-up demand will drive a speedy recovery is being played out at the other end of the world.
Australia and New Zealand’s success in suppressing COVID-19 — outside isolated flare-ups — has sparked a snap back in household and business sentiment, spurring activity and hiring and laying the ground for a sustained recovery. With vaccines being rolled out across the developed world, the prospect of a return to normal is tantalizingly within reach.
Households Down Under are cashed up due to government largess and limited spending options during their respective lockdowns. That prompted Aussies and Kiwis to salt away funds, freeing up room to consume.