Aussie let-it-rip strategy backfires

<p>Kia ora,</p><p>Welcome to Monday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news the grand permissive let-it-rip Omicron experiment seems to be backfiring in Australia.</p><p>ANZ says spending in Sydney and Melbourne is now near levels typical of lockdown conditions. Indeed, total ANZ-observed spending in Sydney is at its lowest point since COVID began, they say. Caution about being in public places is being compounded by staff shortages which is stifling spending across dining, retail and travel. Dining spending in Queensland and Western Australia resembles previous lockdown conditions.</p><p>Now their Treasurer has <a href="https://www.abc.net.au/news/2022-01-07/federal-treasurer-josh-frydenberg-tests-positive-for-covid-19/100745204" target="_blank"><strong>tested positive</strong></a> and is locked in self isolation. A number of State politicians are too.</p><p>In NSW, there were <a href="https://www.health.nsw.gov.au/Infectious/covid-19/Pages/stats-nsw.aspx" target="_blank"><strong>30,062 new community cases</strong></a> reported yesterday, similar to the day before, now with 292,237 active locally-acquired cases (and undoubtedly an undercount), and 16 more deaths. NSW hospitals face critical staff shortages, and they have been told the number of COVID-positive people needing inpatient care could exceed 4500 within a month. They are already at 1,927. 22,104 pandemic <a href="https://www.coronavirus.vic.gov.au/victorian-coronavirus-covid-19-data" target="_blank"><strong>cases in Victoria</strong></a> were reported yesterday, similar to the day before. There are now 83,993 active cases in that state - and there were more 4 deaths. </p><p>Queensland is <a href="https://www.qld.gov.au/health/conditions/health-alerts/coronavirus-covid-19" target="_blank"><strong>reporting</strong></a> 18,000 new cases but no new deaths. In South Australia, new cases ha