Economics
RBA Sees Consumption Down 15%, Restrictions Key to Recovery
- Unemployment to hit 10% in June, still be at 7.5% at end-2021
- Upside scenario could see jobless back at 5% in couple years
Pedestrians walk past the Reserve Bank of Australia (RBA) headquarters in the central business district of Sydney, Australia.
Photographer: David Gray/BloombergThis article is for subscribers only.
Australia’s central bank said household spending is likely to slump about 15% in response to the lockdown to stem the spread of the coronavirus and the outlook beyond the first half of this year depends on how long those restrictions last.
“In Australia, output is expected to contract significantly over the first half of 2020, mostly in the June quarter,” the Reserve Bank of Australia said in its quarterly update of the economic outlook released in Sydney Friday. “While the exact size of the contraction is still uncertain, a decline in GDP of around 10 percent from peak to trough is expected.”