Virus to wipe $50 billion off Aussie economy.
Australia’s economy will take a $50 billion hit in the June quarter, but things could get a lot worse if restrictions to deal with the coronavirus stay in place.
As the nation’s leaders start planning baby steps towards normality, its accountants have calculated the economic cost of the health measures.
Treasury has estimated Australia’s economy will shrink by between 10 and 12 per cent by June, equivalent to $50 billion.
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A harsher lockdown, akin to the eight-week closures seen across Europe, could wipe $120 billion from GDP.
Prime Minister Scott Morrison has said Australians have earned themselves an early mark for their work in flattening the curve of infections.
Every extra week the current restrictions stay in place costs the economy another $4 billion.
In the current crisis, Treasury expects the jobless rate to double to 10 per cent by June.
‘Trans-Tasman bubble’ up for discussion today.
A trans-Tasman bubble could be formed after New Zealand’s prime minister joins Australian leaders in a discussion about battling the coronavirus and easing restrictions.
Jacinda Ardern will share New Zealand’s experiences during today’s national cabinet meeting.
While Australia’s constitution envisages New Zealand could one day join the federation, such a meeting is unprecedented.