The ABS figures show the labour market deteriorated through May, consistent with expectations that the Australian economy was in the midst of a sharp contraction due to the coronavirus shutdown.
The March figures are better than we had expected, and although for the June quarter we expect an 8 percent fall in GDP – given the wholesale shutdown in the economy – we are more optimistic than some for the overall 2020 forecast.
Our modelling, commissioned by the CSIRO, shows by embracing a circular economy we can expect an increase in GDP of $23bn by 2025.
One reason for Australia’s effective performance can be traced to our health system capability and preparedness, where we rank in the top 10 percent of all countries.
To me, really big measures are needed and this JobKeeper policy meets that need.
The government’s main focus at the moment appears to be to strengthen the safety net designed to help individuals and families impacted by COVID-1.
The RBA was obliged to cut rates to 0.25%. It is right that monetary policy should be working in a co-ordinated manner with the government’s fiscal stimulus packages.1
KPMG modelling in a report published today estimates Australian GDP would be at least 0.9 percent lower in 2020 because of the COVID-19 pandemic.