26 September 2023

Treasury research finds economy stretched

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The Department of Treasury and Finance has completed new economic modelling revealing the level of impact the coronavirus pandemic could have on the State’s economy into next year.

Premier Daniel Andrews said the Department’s modelling found the pandemic could lead to 270,000 lost jobs and an unemployment rate of 11 per cent by September.

“The modelling also shows that Gross State Product is predicted to decline by an unprecedented 14 per cent in the June quarter, relative to previous forecasts,” Mr Andrews said.

“Property prices may also fall by up to nine per cent by the end of 2020,” he said.

The Premier said the Department’s modelling aligned with recent forecasts provided to the National Cabinet by the Federal Treasury and the Reserve Bank of Australia.

“[The modelling] confirms that the economic consequences of coronavirus will be unlike anything most Australians have seen in their lifetimes,” he said.

“We know the economic impact of coronavirus will get significantly worse before it gets better – and the hard road to recovery will be longer than first expected.”

Mr Andrews said the Government was considering further measures to support workers and their families, businesses and industries and would have more to say in due course.

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