The economy contracted sharply in 2020 despite an early government response to
covid-19, and the rebound will be modest as global trade stays soft. The prime minister,
Scott Morrison, will lose popularity as pandemic-imposed hardship persists, and this
could be the last full year in office for the three-term Liberal-National coalition as
elections approach in 2022. Fallout from the crisis, internal disagreement over energy
and climate policy, and the government’s thin majority will hamper progress on its
legislative agenda.

TO WATCH: Island chain. The Pacific Agreement on Closer Economic Relations Plus
(PACER Plus), a trade and aid pact linking Australia, New Zealand and nine Pacific island
nations, takes effect in 2021.

Bangladesh

GDP growth: 5.8%

GDP per head: $2,200 (PPP: $5,550)

Inflation: 5.6%

Budget Balance (% GDP): - 6.8

Population: 166.3m