Modelling undertaken by Ernst & Young on behalf of the Business Council of Australia highlights the potential impact of coronavirus lockdown measures on the Australian economy.
EY estimates that the lockdown will cost the economy about $200 billion in the first month and $280 billion after three months. This would rise to $400 billion (21% of GDP) if the lockdown remains in place for six months.
BCA CEO Jennifer Westacott says the duration of the lockdown will determine whether the economic recovery is U-shaped or V-shaped. She, therefore, recommends relaxing restrictions.
