SYDNEY: Australia will take a 10% hit to gross domestic product and the unemployment rate will likely double in the June quarter due to measures to limit the spread of the new coronavirus, Treasurer Josh Frydenberg will say in a speech on Tuesday.
But the impact would have been a lot worse if Australia – with more than 6,800 coronavirus infections and 96 deaths – had followed Europe’s example and imposed stricter controls on all non-essential services, he is expected to say. “This would have seen enormous stress on our financial system as a result of increased balance sheet impairments, widespread firm closures, higher unemployment and household debt.Still, the economic shock from Covid-19 would be “profound and long-lasting”, with Treasury estimating the unemployment rate to double to 10% in the June quarter, Frydenberg will say in a speech to the National Press Club.