The recession is feared as Melbourne’s second lockdown hinders recovery after the second wave of COVID-19
Recession fears as Melbourne’s second shutdown hinders recovery after states were forced to close their borders – as experts predict massive job losses
- Australia is already feeling effects of Melbourne’s second lockdown, data shows
- Tax data on Tuesday showed that 35 percent of jobs lost due to the crisis have been regained
- However, total spending in Victoria fell by three percent in the week to July 10
- NAB chief economist said the economic recovery may level off with the second wave
Australia is already feeling the effects of the second Melbourne shutdown, as closing the state borders to halt the second wave of Victoria’s corona virus hinders economic recovery.
Tax authorities’ data released Tuesday revealed that the country as a whole was beginning to recover from the pandemic – with 35 percent of jobs lost during the crisis as of June 27.
Stage three restrictions re-imposed on Melbourne, but as a result of a revival of COVID-19 cases, have stunted spending growth, according to the most recent data from the Commonwealth bank.
Commonwealth figures showed spending in Victoria fell three percent in the week to July 10.
Gareth Aird, the head of the bank’s Australian economy, said the new lock would be the “inevitable consequence of the shutdown of large parts of the economy” and could lead to a further rise in unemployment.
Police are outside the Alfred Street residential tower in Melbourne on Saturday. The newly imposed lockdown in Victoria is already stifling economic growth, figures show
“The newly redesigned restrictions on businesses and households in Victoria will lead to another round of job losses,” he said.
National Australia Bank chief economist Alan Oster said there were concerns that the economic recovery had leveled off as infection rates rose in Victoria.
Although the turnaround may have gone faster than expected, it has certainly not fully recovered.
“While restoring confidence is encouraging, the survey suggests that there is still a long way to go before business fully recovers.”
Mr. Oster said the recovery between Victoria’s first and second lockdown was the fastest ever recorded, with an unprecedented increase in business confidence.
Millions of Australians with pensions and low incomes received a cash boost from the government this week, which it hopes will boost the coronavirus-stricken economy.
The second round of $ 750 payments for retirees, veterans, and caregivers began Monday in people’s bank accounts.
About five million Australians are worth $ 3.8 billion.
35 percent of jobs lost during the crisis were already regained on June 27, but consumer spending fell in Melbourne’s second shutdown. Depicted are people who lined up outside the Centrelink on March 23 at the start of the pandemic
A health official checks a motorist at a test center in Melbourne on Friday as the seal is reattached in Australia’s second most populous city
After a resurgence of COVID-19 cases, Melbourne has again been restrained in phase three
Treasurer Josh Frydenberg will outline the next phase of the coronavirus support measures in an economic update on July 23, including the fate of the JobKeeper wage subsidy and the improved JobSeeker benefit that will expire by law in September.
He acknowledged that returning to Melbourne closures would be “hard on businesses and households.”