“If these restrictions were increased even further, akin to the eight week lockdown in Europe, then the adverse impact on GDP could double to 24%, or $120bn, in the June quarter. This was the cliff we were standing on.”But he says for every extra week the current restrictions remain in place, Treasury estimates that we will see close to a $4bn reduction in economic activity from a combination of reduced workforce participation, productivity and consumption. The treasurer’s speech to the National Press Club coincides with a meeting of the national cabinet to consider easing the current restrictions, one of two deliberations scheduled this week. Victoria has seen the steepest falls in consumption at 23%, compared with Tasmania, which has seen a fall of 14.9%. “In the current coronavirus, it is expected the unemployment rate will go up by around 5% in three months, let alone three years.

Source: The Guardian May 04, 2020 17:26 UTC