In a note published by US investment bank JP Morgan & Chase Co. On Monday evening, the bank's economists predicted that reopening China and lifting epidemic restrictions in the People's Republic would contribute to boosting economic growth in Australia, adding about 1% to Australian gross domestic product.
The most important aspects of the memorandum in this regard were the following:
- China's shift towards early re-deregulation raises the question of potential effects on Australia's economy.
- The biggest potential benefit of China's reopening for Australia will be in the services sector, given that China is the largest consumer of Australia's tourism and education exports.
- A full recovery of tourism within Australia could add about 0.5% to the country's GDP.
- The return of international students from China to Australia may add another 0.4% to the latter's economic growth.