As Victoria emerges from five months of stage four lockdown conditions, the nation asks how will the state recover from one of the world’s most severe COVID-19 restrictions?
Urbis’ Chief Economist Richard Gibbs stated, “what will be important is the speed of bounce back. The state can recover if it can find a way to augment demand growth that would have otherwise come from substantial population growth and net overseas migration.”
Although Victoria’s economic output is predicted to fall by 4% in the current financial year, the state has encountered similar headwinds before, with the 1991-92 recession incurring a 0.25% contraction.
The Victorian Budget 2020-21 predicts that the state’s economy will move from severe contraction to exceed Australia’s national growth rate.