Sydney Jan. 12 (BNA): Australia’s most populous state, New South Wales, suffered its deadliest day of the pandemic on Wednesday, as a surge in Omicron infections led to staff shortages that disrupted supply chains and hampered the economy’s recovery.
Australian businesses are grappling with the growing number of workers who are sick or have been ordered to isolate due to being in close contact. But the virus is also scaring customers away from the airlines and the leisure and hospitality sectors, which have already been hit by several shutdowns over the past two years.
“(Small businesses) are basically closed… There is a little bit of support to help them keep their doors open,” Reuters quoted Alexi Boyd, president of the Council of Small Business Organizations, as saying on Wednesday.
Daily infections in Australia on Wednesday continued near record numbers with around 100,000 cases reported so far. 42 new deaths were recorded, as New South Wales suffered its worst day of the pandemic with 21 deaths.
Labor shortages and caution about being in public have stifled household spending, ANZ said in a research note, with spending in early January resembling lockdown conditions in Sydney and Melbourne, Australia’s largest cities.
Before the Omicron outbreak broke out over the Christmas period, the economy was surprisingly recovering. In November, employment levels rose much faster than expected as the coronavirus lockdown was lifted, and retail sales rose for the second month in a row.
Amid pressure on supply chains, supermarket chain Coles Group has reimposed purchase restrictions on toilet paper, some meat products and medicine.
Prime Minister Scott Morrison drew criticism at the start of an election year over his handling of the Omicron outbreak, proposing easing isolation rules for asymptomatic workers ahead of Thursday’s national cabinet meeting.
The president of Melbourne’s Chapel Street district, a local marketing body representing about 2,200 business entities, said the controversy over tennis star Novak Djokovic “created the perfect distraction” for Victoria Premier Daniel Andrews and Morrison.
“(Djokovic’s case) means there is nowhere near enough focus on the absolute annihilation of small businesses,” said General Manager Chrissy Moss.
An Australian court on Monday overturned the government’s decision to revoke Djokovic’s visa over issues regarding his medical exemption status, but he still faces the risk of deportation.
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