The NSW economy is expected to outperform the national average, but the outbreak in VIC is a reminder how quickly things can change. The story is varied across the state with many regional areas in a vulnerable position. Place based support may aid the recovery in these areas.
After a terrible fire season that hurt many regional areas, COVID-19 has sent the state into a recession along with the rest of the country. But the state has done a pretty good job to date in beating back the virus, with some parts of its dominant service sector opening up quickly and government infrastructure projects kicking into gear. So, when it comes to 2020, economic activity is expected to contract in the state, but it will remain in the top half of the pack heading into 2021.