Sky News host Chris Kenny says although the Australians knew it was coming, Thursday’s economic update was “tragic for the nation”.
Treasurer Josh Frydenberg announced Australia’s gross debt is forecast to hit $851.9 billion with this year’s budget deficit expected to reach $184.5 billion due to the novel coronavirus.
Mr Frydenberg said unemployment would peak at 9.25 per cent in December, although the real number will far higher as the virus wreaks havoc on large swathes of the economy.
The treasurer and finance minister also revealed how damaging the Victorian lockdowns have been
It is estimated the shutdown in Victoria will reduce the nation’s real GDP growth by around $3.3 billion.
Mr Kenny said the treasurer forecasted the economy will begin to rebound next year.
“It is this forecasting, these expectations, that I reckon we need to be careful about,” Mr Kenny said.
“The optimism is based on keeping the virus at bay, and as we’ve seen, that’s easier said than done.
“Alternatively it means that when there are outbreaks in the future, we don’t lock down hard the way Melbourne has done.”
From: Sky News Australia