China is a major contributor to Australia's tourism and education exports
Australia's tourism sector has not fully recovered
Australia's economy will benefit from China's end of its zero-Covid policy over the next two years, according to JPMorgan.
JPMorgan's chief investment strategist, Tom Kennedy in his report on Saturday, said China's reopening had raised questions about the potential implications for the Australian economy.
As Beijing is Canberra's biggest contributor to tourism and education exports, the services sector is seen as a key factor for Australia's economy.
Australian tourism is projected to add 0.5% to its gross domestic product (GDP) and the return of international students from China will add another 0.4% bringing almost 1% to the country's GDP.
Currently, the tourism sector in the country has not fully recovered despite the increased influx of tourists from New Zealand, the United Kingdom (UK), and the United States (US).
With the reopening of China, the influx of tourists from that country to Canberra could help Australia's tourism sector grow again.
Meanwhile, JPMorgan predicts that international student enrollment rates will increase this year.
Looking at data from the Australian Department of Education, more than 253,000 international students arrived from China from January to October 2019 but slightly decreased to about 173,000 in October 2022.
JPMorgan said if China's education exports return to 2019 levels, the boost to GDP could increase by 0.4%.
