Business
Governments told to spend more as Victorian restrictions drag down national economy – Sydney Morning Herald
The RBA and the IMF have both urged governments to keep spending to minimise the growing economic impact of Victoria’s stage four lockdown.
It now expects the economy to contract by 6 per cent this year before growing by 5 per cent in 2021. The bank believes unemployment, which the federal Treasury only a fortnight ago forecast to peak at 9.25 per cent by December, will reach 10 per cent by year’s end and take at least two years to gradually fall to 7 per cent.
Unemployment at 10 per cent would mean an extra 340,000 people out of work on top of the almost 1 million already without a job.
Dr Lowe said the economy faced an “uneven a…
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