New data reveals devastating economic consequences for Victoria

More than 250,000 Victorians are likely to lose their jobs because of the coronavirus shutdown, according to new state treasury modelling.

In modelling that Treasurer Tim Pallas describes “bleak” and “devastating”:

• 270,000 Victorians will be thrown out of work
• Unemployment to rise as high as 11 per cent by September
• Property prices to fall 9 per cent by the end of the year
• The state’s economy to contract by a massive 14 per cent.

Mr Pallas says it won’t simply be a matter re-opening once the virus’s threat passes.

Recovery will be slow.

“It will take time for the economy to repair,” he said.

“We’re facing an economic challenge that this country hasn’t seen in generations, this state hasn’t seen in generations.”

The government is asking parliament to approve an additional $24.5 billion in borrowing to support people who are sick or suffering, and then pump-prime the economy when the time is right.

That’s likely to be done with a big program of construction and maintenance work that can be started quickly, rather than a new mega-project.