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:
344 in 24 hours is a huge jump for Australia.