Who would have thought that Covid-19 could become a source of comparative advantage for Australia’s economy?
Lock downs and social distancing has taken a heavy toll on our economy, in particular those working in hospitality and tourism. But there is some silver lining to this situation.
Australia is among a very small group of nations that has managed to effectively deal with Covid-19. This is helped by the fact we are an island nation. Where else on earth would you rather be right now than Australia? New Zealand has also done a remarkable job.
So apart from feeling safe, what are the economic benefits of Australia’s success in combating Covid-19? One perhaps unexpected benefit is the international film industry. Australia is now in peak demand for making films. There are few places on earth setup for international film that are safe as Australia. Having to shutdown production due to Covid outbreaks is expensive. Many producers are now considering the mandatory 14 day shutdown period as a desirable option.
It appears the vaccine development has been successful and will begin to be rolled out in 2021. Experts suggest the global rollout will take at least two years across rich nations, much longer across the developing world where refrigeration is difficult.
Even with a vaccine Australia stands to benefit from being virtually Covid-free. It is yet to be determined how long the immunity lasts for the changing nature of Covid strains. The Australian film industry and other sectors stand to benefit during this time.