Question

The coronavirus intervened Australia in early 2020.

On 12 May, the Morrison government issued an unprecedented progress report on the delayed budget, outlining the coronavirus pounding to the national economy and the huge outlay to deal with the pandemic.

What were the main issues presented? How do you think they would affect the economy, social and employment situation in the near future?

Answer 1

About 10 percent of the GDP fall down from the business in Australia due to the pandemic. The Australian government was willing to drop their ideology due to this virus. There is a large fall in employment rates and this leads to loss of job by several people. Before the pandemic they followed government mega job saving scheme to hibernate the economy. But at current situation it is not possible. This pandemic affects the agricultural sector, fisheries and forestry sector very badly. There is an uncertainty created in the demand side. The travel restrictions reduce the import flow of raw materials to the economy. Here is an unavailability of labours occurred in the market. This disrupts the exporting ability of several industries. This was maintained through visa arrangement to seasonal workers, and this reduces the level of risk. There is intense drought in the Australian region affect the production with this pandemic.

The uncertainty regarding the end of the pandemic make the conditions wore and this affect the investment also. The Reserve Bank of Australia imposes low interest rates to attract investment and also increase the wage rates to attract more workers to the market. The governments in all over the world increase their borrowing limit to deal with the economic fall down. On the other hand, they are not bothered about the repayments. The huge loss in the Chinese economy affects the exports from Australia. There is a high credit risk occurred in the universities in Australia. This badly affects the higher education system and this will also affect the future of Australian economy.