It seems that Australia may be one of the most prominent countries that benefit from China's decision to ease Corona measures, as JPMorgan Bank indicated that China's reopening of its economy may positively affect the Australian economy, especially since the tourism and education sectors in Australia depend heavily on China.
The bank note added that the recovery of the tourism sector in Australia may add 0.5 percentage points to its gross domestic product, while the return of international students from China will add another 0.4 percentage points, which means that Australia's economy may grow by a full percentage point if China reopens its economy.
Although Australia lifted travel restrictions related to Corona in July last year, the proportion of arrivals from abroad in the short term is still far from pre-pandemic levels, as the latest data from the Bureau of Statistics in Australia showed that the proportion of arrivals reached approximately 430,000. During October 2022, which is 44% lower than the levels for the same month in 2019.
It is noteworthy that the arrivals from China to Australia during the year 2019 were approximately 15.3% of the total tourists, which makes the Chinese the most visited Australia in the short term, according to JPMorgan. The bank also added that the spending of the average Chinese tourist was four times that of the New Zealand tourist, who is the second most traveled to Australia.
JPMorgan also expected an increase in the percentage of international students this year in Australia as a result of China opening its economy, and according to data from the Australian Ministry of Education, the number of international students from China decreased from more than 253 thousand students during the period from January to October of 2019 to 173 thousand in October 2022.
JPMorgan's expectations for the growth of the education sector in Australia as a result of China's opening of its economy come based on the fact that students from China represent 26% of the total number of registered students, which is the highest of any single country.