Pandemic-Infused Opportunities: How Australian Tech Industry Will Benefit From The Outbreak Of COVID-19

The outbreak of the COVID-19 pandemic is, without a doubt, the single most destructive event that the world has been subjected to in the last few years. On top of the horrific healthcare crisis, it brought about the disruption of the everyday lives of the people all around the world and has caused significant damage to the state of global and national economies. However, not every segment of the global economy has been forced into the turmoil - a certain part of it did not only manage to stay afloat but has also grown at an exponential speed as a direct result of the COVID-19 outbreak. As people were forced to self-isolate amidst the wide, pandemic-infused lockdown, the tech industry began to flourish. Its rapid growth did not only lead to the emergence of tech giants as one of the world’s largest economic players but also finally made the policymakers from all around the world the clear benefits and revenues that the tech industry can bring to the national economies. It, consequently, led to the lawmakers widely including tech industries into their emergency recovery packages, which can only be interpreted as the industry finally getting the spotlight that it deserves - and Australia is no exception.

A Positive Outlook That Was Long Anticipated

Unlike its neighboring countries - the USA and Canada, Australia has managed to have COVID-19 have a lesser effect on the state of its national economy. Nonetheless, on Tuesday new emergency support measures were introduced, and over 570 million USD, or an equivalent of 800 million AUD, were dedicated solely to digital technologies. The new recovery measures are covering a variety of issues, such as small businesses adoption of the latest digital technologies, complete implementation of the Modernizing Business Registers (MBR) program, and the expansion of blockchain technologies in the country. The Australian PM Scott Morrison claimed that such measures will not only facilitate swift economic recovery after the coronavirus-induced shock but will also remove unnecessary and outdated regulations that prevented the tech industry from fully flourishing.

One might wonder, why did the Australian government decide to use almost the entire emergency package on enhancing its digital industry-related administrative functions. Many experts believe that this plan is both simple and genius at the same time. “The Australian government realized that in order to boost the industry itself, and the small businesses associated with it, it is necessary to get rid of the old, outdated regulations that created artificial pitfalls on Australia’s tech industry pathway to the economic boom” - said Steve Miller, Chief Market Analyst at TopForexBrokers. He carried on to say that after reaching a record low of the GDP reduction by 7%, this emergency plan might just be what the Australian economy needs to make a swift recovery from the shocks of 2020 - both the destructive bushfires and the outbreak of a global pandemic. And one can already see the positive effects emerging shortly after the announcement has been made.

A Hopeful Few Or The Indicator Of The Right Path

Whenever policymakers take a step towards enhancing a specific industry for the purpose of boosting an overall state of the national economy, there is anxiety both on the side of government authorities and among the industry CEOs. More often then not, such attempts end up causing more damage than the good that they were intended to bring about. However, this was not the case with Australia. Only a day after the new emergency package was introduced, local CEOs proceeded to invest in the Australian digital technology, and, by doing that, demonstrated a high level of сonfidence in the government’s abilities and a certain degree of trust in the efficiency of the newly applied recovery measures. Such a combination might actually end up being the positive reinforcement that will bring about more change and industry enhancement.

But what exactly are the benefits that the development of the tech industry would bring to the Australian economy? First of all, it will be able to open more opportunities for employment, as the industry is constantly looking for the specialists, who, coincidentally, are largely left jobless amidst the outbreak of a global pandemic. Secondly, it contributes directly to increasing the countries’ GDP, which, as previously mentioned, was following the global trend of significant reduction. With the number of goods and services providers, who were forced to move into cyberspace, the digital tech industry can contribute to the positive growth of e-commerce and facilitate swift economic recovery in the aftermath of coronavirus. Thirdly, the expansion of digital tech is bound to translate into the creation of new services and sub-industries, which, overall, is a crucial process of ensuring that the national economy is constantly benefiting from the inflow of innovation. Finally, the tech industry can trigger the country’s economic growth by transforming the very nature of the workforce and making it far more efficient and far less costly.

It is yet unclear what the future of the Australian digital tech industry will look like in the long run, however, one can already say with all confidence that the outbreak of the COVID-19 pandemic has had a positive impact on its development.