Sydney COVID lockdown extended as double-dip recession fears grow

Australia's tight rules and low vaccination rate threaten economic comeback

20210728 sydney

A man fishes across the harbor from the Sydney Opera House on July 27. Residents and businesses in the greater Sydney area are under tight COVID-19 restrictions. © Getty Images

PRASHANT MEHRA, Contributing writer

SYDNEY -- The highly contagious delta strain of COVID-19 is threatening to upend an Australian economy that has weathered the pandemic well, forcing an extension of Sydney's lockdown on Wednesday and raising the possibility of a double-dip recession.

Half the country's 25 million people have been under strict stay-home orders across the state capitals of Sydney, Melbourne and Adelaide after infections leaked into the community from returning citizens. A botched vaccine rollout, meanwhile, has further exposed the island nation even as the U.S., U.K. and Europe rush to reopen their economies.

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