InDaily InDaily

Support independent Journalism Donate Subscribe
Support independent journalism

National

Treasurer reveals pandemic's deep economic impact

National

Treasurer Josh Frydenberg has unveiled a horror economic forecast for the June quarter, in the wake of coronavirus restrictions crippling businesses nationwide and throwing hundreds of thousands of workers out of their jobs.

Print article

In a ministerial statement on what waw meant to be federal Budget day, Frydenberg revealed Treasury forecast a 10 per cent drop in GDP for the June quarter, worth $50 billion –  equivalent to total quarterly production of SA, Tasmania, NT and the ACT.

It would represent the biggest fall on record.

Household consumption was forecast to drop by 16 per cent, with business and dwelling investment both down by 18 per cent.

Household savings were set to increase, with Treasury delivering an updated fiscal outlook in June after March quarter national accounts.

But Treasury data on hand showed job ads halved in April, while activity in construction, manufacturing and services recorded their largest ever monthly falls.

New motor vehicle sales dropped by 48 per cent, and house sales by 40 per cent.

Domestic and international air travel was down more than 97 per cent, the number of jobs fell 7.5 per cent and the wages bill paid by businesses fell 8.2 per cent.

Accommodation and food services lost 33.4 per cent of jobs, followed by the arts and recreation sector which lost 27 per cent.

More to come

-AAP

Want to comment?

Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.

We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts. 

Make a comment View comment guidelines

Local News Matters

Media diversity is under threat in Australia – nowhere more so than in South Australia. The state needs more than one voice to guide it forward and you can help with a donation of any size to InDaily. Your contribution goes directly to helping our journalists uncover the facts. Please click below to donate to InDaily.

Donate here
Powered by PressPatron

More National stories

Loading next article