‘Unprecedented’ economic shock: Treasurer warns economy may shrink 10 per cent by June

Coronavirus shutdown measures are costing the Australian economy an “unprecedented” $4 billion a week, the Treasurer has revealed today.

In a Press Club address, Treasurer Josh Frydenberg warned the economy could shrink by 10 to 12 per cent by next month.

Speaking to 3AW’s Tom Elliott, he said an economic shock on this scale “has not been seen before.”

“To put it into perspective for you, when the GFC hit the global economy contracted by 0.1 percentage points in 2009. The International Monetary Fund is now saying it will contract a full three per cent this year,” Mr Frydenberg said.

The Treasurer said the government is focused on reopening sectors that maximise economic gains without significant health risks, and hinted at a push to reopen schools across the country.

“We’re trying to focus on those sectors that enable the broader economy,” Mr Frydenberg said.

“For example, if kids get back to school then that means parents who have got young kids, who otherwise would be at work, can be freed up to re-enter that workforce.”

JUST IN | Prime Minister Scott Morrison says getting Australians back to work is a priority for the national cabinet.

“We now need to get a million Australians back to work.

“That is the curve that we need to address.” pic.twitter.com/5k1bW7jpkA

— 3AW Melbourne (@3AW693) May 5, 2020

Press PLAY below for the full interview on 3AW Drive.

Image: Rohan Thomson / Getty