Sydney extends COVID-19 lockdown for another 2 weeks as Australia battles Delta strain

Sydney's lockdown has been extended for another two weeks as the city faces an epidemic of the delta strain of the coronavirus, which has already isolated it from the rest of the country for three weeks.  New South Wales state premier Gladys Berejiklian announced on Wednesday that stay-at-home orders will be in effect until at least July 30. On July 13th, the city reported 97 new cases, including at least 24 people who were infectious in public despite being ordered to stay at home. 

She stated that they will have to keep the lockdown in place for at least another two weeks, further adding that at the end of the two weeks, they will analyse the situation and provide additional information. Authorities in Australia are attempting to eliminate community transmission entirely under the "Covid zero" approach.

Australia's vaccine roll-out is the second-lowest

Due to Australia's poor vaccine roll-out, which is the second-lowest among the 38 OECD countries, the country is particularly vulnerable to the delta variant, which is progressively leaking out of the quarantine system for international visitors. While economies such as the United Kingdom and the United States are expanding, Australia's international borders remain mostly closed, and comparatively small coronavirus clusters make even domestic movement difficult as states and territories close the drawbridge.

On Tuesday, Australia's pro-business government increased support for businesses and workers affected by extended lockdowns, giving the state's pro-business government more leeway to stop the virus from spreading as authorities become concerned that people aren't adhering to lockdown rules. The newest outbreak, which has surpassed 864 cases, began last month when an unvaccinated chauffeur became infected while driving airline personnel.

Even still, the economic consequences of shutting down Sydney, which accounts for approximately a third of Australia's annual output, will be felt. Should the city be closed for another three weeks, Goldman Sachs Group Inc. trimmed its third-quarter growth prediction for Australia to 0.6 per cent, down from 1 per cent previously.

Sydney lockdown will cost the Australian economy

In a report released Wednesday, the Commonwealth Bank estimated that each week of Sydney's lockdown costs the Australian economy A$1 billion ($744 million). The shutdown has heightened economic uncertainty in the short term, but once limitations are lifted, the economy should quickly recover, according to the report.