Lowy Institute Poll 2020 Report

Australia’s economy and free trade agreements

Economic optimism

Facing the prospect of a global economic downturn of a severity not seen since the Great Depression, Australians’ optimism about the economy has fallen to record lows, although a slight majority (52%) remain optimistic. This is the lowest level of optimism recorded in the history of the Lowy Institute Poll. It represents a 13-point fall from 2019, and is 34 points lower than the high point in 2009 and 2010 (86%). Only 3% of respondents say they are ‘very optimistic’ about Australia’s economy.

International students

The reliance of Australian universities on overseas students has been a subject of increasing debate over the past year. This issue has only become more significant as travel restrictions have dramatically reduced university revenues in 2020. A majority of Australians (52%) say the number of international students enrolled at Australian universities is about right. Four in ten (43%) say the number is too high, while only 3% say international enrolments are too low at Australian universities.

Older Australians appear to be more concerned about international students, however. Half of those aged over 45 (52%) say that the number of international students is too high, compared with 34% of Australians aged between 18 and 44.

Free trade agreements

Australia is in the process of negotiating several free trade agreements, including with the United Kingdom, European Union, and India. In 2020, a majority of Australians say that proposed free trade agreements with the European Union (58%) and the United Kingdom (56%) would be good for Australia.

However, Australians are more divided about a free trade agreement with India. Four in ten Australians (44%) say that a free trade agreement with India would be good for Australia, while 28% say it would make no difference and 24% say it would be bad for Australia.