Aussie economy faces decade in doldrums

Last week I presented charts derived from the latest national accounts showing how the current COVID-19 induced recession is by far Australia’s biggest economic contraction on record, dwarfing prior episodes:

I also warned that it could take up to five years for the Australian economy to recover its lost output, given the enormous magnitude of this decline.

The Grattan Institute has released new research warning that it will take almost an entire decade for Australia to recover its lost output unless government’s commit $100 billion to $120 billion of new economic stimulus:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.