WPAC forecast contractions for the economy in both Q2 and Q3:

  • -3.5%
  • -0.3%

respectively.

  • Sustained recovery commencing in Q4.
  • Forecast unemployment rate to 11% by June.

Westpac issued revised forecasts only last week, with a jobless rate fiorecast of 7%. Developments are, of course, coming quickly prompting the economists at the bank to update their forecasts.

  • Last week we forecast a peak in the unemployment rate of 7%
  • Since then we have seen the roll out of more extensive shutdowns than we had originally envisaged
  • Economic disruptions are set to be larger as the government moves to address the enormous health challenge which the nation now faces
  • challenge is probably best summarised by a potential shortage of ICU beds in coming weeks if we do not significantly slow the rate of infection immediately.

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I suspect we will get even tighter shut down restrictions announced by governments either today or tomorrow. WPAC are spot on

  • a potential shortage of ICU beds in coming weeks if we do not significantly slow the rate of infection immediately

"Flattening the curve" of infections is priority #1 for the Australian government right now.

Latest:

WPAC forecast contractions for the economy in both Q2 and Q3:

344 in 24 hours is a huge jump for Australia.