Shutdown costing economy $4 billion a week as Cabinet prepares to assess restrictions
Maintaining the coronavirus shutdown is costing the economy $4 billion a week, according to new Treasury analysis that will be considered by the nation's leaders as they meet to decide which restrictions to lift.Treasurer Josh Frydenberg will give details of a new report into the economy when addressing the National Press Club
The analysis will be considered by the National Cabinet when discussing the possible lifting of restrictionsTreasury estimates the mass closure of businesses and activities, designed to stop the spread of the virus, will see Gross Domestic Product plunge by 10 per cent in the June quarter — the equivalent of $50 billion being wiped from the economy.
In a speech to be delivered to the National Press Club on Tuesday, Treasurer Josh Frydenberg will say he is "reassured" by National Cabinet's decision to bring forward its consideration of which COVID-19 restrictions to lift, and when"For every extra week the current restrictions remain in place, Treasury estimates that we will see close to a $4 billion reduction in economic activity from a combination of reduced workforce participation, productivity, and consumption," he is expected to say.
Treasury has predicted unemployment will double to 10 per cent in the June quarter — its highest rate in 26 years — meaning an estimated 700,000 Australians are expected to join the jobless as a result of this crisis.
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