What does the Omicron surge mean for the Australian economy?

In our first podcast for 2022 our Head of Australian Economics, Gareth Aird and Senior Economist, Belinda Allen discuss the surge in COVID cases and what it means for the Australian economy. There will be short term disruption to both demand and supply due to the sheer number of people in isolation. Hours worked and spending will fall. But over the rest of 2022 we expect the unemployment rate to trend lower, inflation pressures to build and the case for higher interest rates to remain on track.