This archive report was first published on 5 May 2020.
As of May 5, Australia's economy is facing a significant setback due to the ongoing virus shutdown, with a staggering Aus$4 billion (US$2.5 billion) lost every week.
The country has made notable progress in curbing the spread of COVID-19, with new daily cases slowing to single digits or zero in most regions.
However, Treasurer Josh Frydenberg emphasized that measures to curb the coronavirus are having a severe impact on the economy, with a 10 percent GDP forecast plunge in the June quarter.
According to Frydenberg, for every extra week the current restrictions remain in place, the Treasury estimates that close to Aus$4 billion will be reduced in economic activity, primarily due to reduced workforce participation, productivity, and consumption.
Recent data from the Australian Bureau of Statistics (ABS) revealed a 7.5 percent drop in jobs, equivalent to approximately 700,000 workers out of an active workforce of 13 million, in the five weeks leading up to April 18.
Notably, a third of workers in the hotel and hospitality industries, as well as 27 percent of those in the arts and recreation sectors, lost their jobs.
The Treasury has previously estimated that the unemployment rate will double to 10 percent by the middle of the year due to the coronavirus shutdowns, affecting around 1.4 million people.
Furthermore, the ABS reported that 31 percent of households nationwide have seen their finances worsen.
Frydenberg emphasized the need to get people back into jobs and at work, but noted that the country has only met 11 of the 15 health conditions for lifting restrictions, with work ongoing to fast-track the remaining four.
Among these conditions is a greater take-up of the government's contact tracing app, COVIDSafe, which has been downloaded by nearly five million smartphone users.
Australia has recorded over 6,800 cases of COVID-19 and 96 deaths, with large clusters emerging at an abattoir in Melbourne and a Sydney care home.
Some Australian states and territories have begun easing restrictions, and Prime Minister Scott Morrison expressed hope for a 'roadmap' on Friday outlining a return to business.
He cautioned that easing restrictions would lead to increased numbers and outbreaks in some areas, but emphasized the importance of responding effectively to these challenges.
On the same day, the Reserve Bank of Australia (RBA) kept the official cash rate at 0.50 percent, citing the country's difficult economic period and considerable uncertainty about the outlook.
