Shane Oliver of AMP Capital estimates that the one-week extension of the COVID-19 lockdown of Greater Sydney will cost the economy an additional $1 billion. The first two weeks of the lockdown has already had an estimated cost of $2 billion.
Oliver adds that the Australian economy faces an overall economic hit of $5 billion when the recent lockdowns in Melbourne, Perth and Queensland are taken into account. Combined these lockdowns could reduce GDP growth by about 0.1% in each of the June and September quarters:
Perth’s four-day lockdown earlier this year would cost another $200m and Queensland’s three-day lockdown another $300m, Dr Oliver said. Adding in the $1.5bn estimated impact from Melbourne’s lockdown earlier in the year, the total hit to the economy this year was expected to be $5bn…