MELBOURNE (Reuters – Australia will boost its 2022 forecast for economic growth at mid-year budget review. Treasurer Josh Frydenberg stated on Sunday that Australia would increase its economic growth projections in 2022, while adding that it’s too early to predict the economic impact of Omicron coronavirus.

Frydenberg, who will present an update of the budget mid-way through Australia’s fiscal calendar which closes in June, is scheduled to do so in the coming weeks.

Australia’s economy contracted 1.9% in third quarter due to Delta-related illness. But, the nation is making progress towards a quick recovery and has set world-leading vaccination rates.

Frydenberg, who spoke on “Insiders”, a program of the Australian Broadcast Corporation said that “the market has come back strongly”. He pointed to figures showing increased employment and sales growth.

This is due to the high vaccination rate and low mortality in our country.

Data from the Health Department shows that almost 93% of Australians have been vaccinated.

Frydenberg was asked if Omicron (the new Australian variant) would threaten the economy’s outlook as indicated by IMF. Frydenberg replied that there shouldn’t be panic.

Frydenberg declared that “it’s too early for any conclusive decision or estimate about the economy as it relates to Omicron.”

The expected growth upgrade was not stated by him for the 2022 fiscal year. These start in July. Budget released May showed a 4.5% growth for 2021-22 fiscal years before slowing to 2.5% in the next.