The fate of a countries economy relies on how well the governments can contain the growing spread of the coronavirus pandemic. Many nations are already struggling through the aftermath of the virus. Australia’s economy is also facing the harmful effects of pandemic lockdowns, as per reports.
According to Deloitte reports, the nation’s economy is expected to decrease 3 percent; however, Victoria’s financial output alone will fall by 3.5 percent, trailed by Western Australia, and Tasmania.
Chris Richardson from Deloitte Access Economics told 9News, it’s still a shocker for Australia’s economy. Currently, Victoria is suffering the worst due to the pandemic, and its where the economy will also suffer the worst, he added.
The spike in cases in Victoria and the closing of the NSW/Victorian border will harm Australia’s financial development. The two states contribute more than 40 percent to the total of Australia’s economy.
Yet, the absolute monetary loss is difficult to gauge right now because there is an excessive number of factors. However, if there’s a Melbourne-wide financial shutdown, the damage will be felt across the continent.
The job market in Australia is also impacted terribly by the coronavirus lockdown. Regardless of whether you’re with a job or in the same job profile, the worry of losing one will trouble you amid this health crisis.
Today, Treasurer Josh Frydenberg gave a warning amid the NSW Government’s decision to shut its state border with Victoria because of the increasing covid-19 cases in Melbourne.
As per financial experts, the only approach to cut down the underemployment rate is to permit the economy to progress. A self-sustaining economic recuperation can’t occur until its support structures have been removed, says Professor Hogan. He further explains, “consider somebody with a plaster cast around their fractured leg. There’s no way they could start running again until the cast is off, and they’ve undergone some recovery”, ABC News stated.