Not all recessions are created equal

Australia’s success battling the health impacts of COVID19 coupled with decisive action from the government and the Reserve Bank means we are well placed to embark on economic recovery at a faster rate than other countries.

That’s according to a new report from the Boston Consulting Group, which also finds that not all recessions are created equal and the impact will be felt to varying degrees across sectors.

BCG Principal Consultant Whitney Merchant says Australia has been well served by the positive collaboration between government and industry.

“Nobody expected how quickly and effectively decisions could be made when you introduced things like the national cabinet and when you start bringing industry, government and industrial relations stakeholders together to focus on solving problems together,” Ms Merchant tells Brooke Corte.

Not all recessions are created equal, and Ms Merchant says that different sectors will recover at different rates, some Vs, some Us, and some Ls.

“The L-Shaped sectors is only 20% of employment in Australia but they’ve certainly been the hardest hit in terms of job losses,

“When we look forward to the recovery pathway, at best, by Christmas, it’s 50% recovery in those sectors, and even by next June we’re seeing only 70 to 75 per cent back to normal,

“For companies that are in those sectors, it becomes a question of how do you reimagining your business model and how can you make the best of where you’re at to come out the other side stronger,”

Click play to hear the full interview between Brooke Corte and Whitney Merchant: