The Diplomat
The trustees of the Spain-Australia Council Foundation met last week with the Australian Ambassador to Spain, Sophia McIntyre, at the new headquarters of the Ministry of Foreign Affairs.
During the meeting, presented by the President of the Spain-Australia Council Foundation, Joaquín Mollinedo, McIntyre gave an extensive review of the current economic, political and social situation in Australia and the impact and subsequent recovery from the pandemic in the country.
She also reported that, thanks to the implementation of border control measures and selective containment during the pandemic, the COVID-19 mortality rate in Australia has been nine times lower than the OECD average. In addition, the impact of the coronavirus is being mitigated by a high national vaccination rate, which has allowed restrictions to be lifted and economic activity to recover.
According to the ambassador, both output and unemployment are at pre-pandemic levels and GDP is expected to grow by 4.25% this fiscal year and 3.5% in FY 2022-2023. By the end of 2022, the Australian economy is forecast to be 6.6% larger than it was before the pandemic in 2019. Unemployment is at historically low levels and will presumably maintain that downward trend. In addition, Australia is once again open to vaccinated travelers. With open borders, Spain and Australia have an opportunity to regain momentum in the bilateral relationship.
Australia is currently in the midst of an election campaign, with federal elections taking place on May 21. However, there is alignment between the two main parties on defense, foreign policy and trade policy, so continuity in Australia’s priorities in these areas can be expected. Apart from that, both parties have also signaled their commitment to continue with high levels of investment in infrastructure and energy transition.
On the other hand, the conclusion of the EU-Australia Free Trade Agreement will remain a priority, regardless of the outcome of the elections, and will have clear economic and strategic benefits for both Australia and Spain. According to the ambassador, there is still great untapped potential in the bilateral economic relationship. Spanish companies’ interest in the Australian market covers sectors such as infrastructure, transport, energy, technology and security and defense. For their part, Australian investors are showing interest in infrastructure, energy, mining, healthcare, telecommunications and digital services in Spain.
