The jobs market will take longer to recover from the coronavirus recession than expected, the Reserve Bank has warned while revealing new forecasts showing a slow grind for the economy out of the pandemic.
The August monetary policy statement released on Friday morning shows the bank has revised up the unemployment rate to a peak of 10 per cent in December 2020. In its May statement it expected unemployment to reach 9 per cent by the end of the year.The bank expects the economy to contract by 6 per cent this year, in line with its May forecast, however the recovery will be slightly slower than previously forecast.
However, business investment expectations have deteriorated. Instead of falling by 13 per cent this year, the bank now believes it will contract by 17 per cent. "The recovery is expected to be slow and uneven, and GDP will probably take several years to return to the trend path expected prior to the virus outbreak."
"We now think that, even though the initial contraction was smaller, the subsequent recovery is likely to be more protracted and progress on reducing unemployment will be slower," she said.
swrighteconomy JennieDuke Duh
swrighteconomy JennieDuke Hope is useless. Stick to reality.
swrighteconomy JennieDuke This is why the Fed govt must take charge and the RBA know it. We are a Sovereign wealth nation where Fed govt spending is not restrained by tax collected only the resources we have and the Govt's agenda. We must spend to the people's needs, not the LNP agenda. LearnMMT
swrighteconomy JennieDuke You don't say
swrighteconomy JennieDuke Are they saying that COVID__19 isn't going to follow Scotty & Josh's timetable?