Economic recovery post pandemic?
Team Veye | 12 May 2020
It has now been about four months when the World Health Organisation first declared COVID-19 a world health emergency in January 2020. Since the outbreak was first diagnosed, it has spread to over 190 countries.
The infection has, so far, sickened more than 4 million people with thousands of fatalities. In Australia, the total number of confirmed COVID-19 cases stood at 6929 as on 9 May, with 6135 recovered cases and 97 deaths recorded since 22 January 2020.
The pandemic is having a severe impact on global economic growth. More than 80 countries have closed their borders to arrivals from countries with infections, ordered businesses to close, instructed their populations to self-quarantine, and closed schools to an estimated 1.5 billion children. Global trade could fall by 13% to 32%, depending on the depth and extent of the global economic downturn. The Great Lockdown is projected to shrink global growth dramatically.
COVID-19 outbreak in Australia is being managed as a health emergency. The situation in the country is changing rapidly. With the country's daily growth rate of new infections getting steadied, the focus has shifted to economic health.
As the number of new cases comes down, with the curve appearing to be flattening, the government is discussing options for easing restrictions in the next few months. Australian Prime Minister has announced a three-step plan to reopen the country's economy by July,
The Government is acting decisively in the national interest to support households and businesses and address the significant economic consequences of the Coronavirus. So far, direct government aid to businesses in response to the virus is approaching A$200b.
With the coronavirus pandemic denting the state's finances, the governments will be forced to re-prioritise projects. The pipeline of infrastructure projects could be one of the major levers that the state has to drive its economic growth post-pandemic.
Already, Western Australia has deemed mining an essential service. Further help was that despite the virus, China kept buying iron ore from Australia. Nation's two biggest competitors, Brazil and South Africa haven't been able to operate as normal.
Measures are now being taken so that Australians go back to work in a safe environment. The next step beyond this will be to build confidence and momentum and getting the economy back to a more sustainable level.
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