The lift in annual growth to 2.2 per cent in the December quarter confirms the Reserve Bank’s “gentle turning point” for the economy heading into the bushfire and now coronavirus shocks. It at least means the economy had some momentum ahead of what is likely to be an economic contraction in the March quarter and perhaps even the following three months. The task now is to calm the panic, cushion the short-term and push ahead with needed supply-side reforms to help the economy rebound from the shocks.

The missing ingredient continues to be business investment. It has fallen now for the last two quarters, and its long-term weakness is the reason why Australia’s productivity performance has been flat for more than three years.