Economic hit may not be as bad as first feared, says Reserve chief
The economic downturn from coronavirus may not be as severe as predicted, Reserve Bank boss Dr Philip Lowe says.
Lowe has told a Senate inquiry Australiaās recovery largely depends on when the public regains its confidence in their health and finances.
āWith the national health outcomes better than earlier feared, itās entirely possible the economic downturn will not be severe as earlier thought,ā he told the hearing on Thursday.
āEven as the recovery gets under way, as it will, there will still be a shadow cast over our economy by the pandemic.
āAnd as a country weāll need to turn our minds as how to best move out of that shadow.ā
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Lowe says more job losses are expected but not as bad as the figures from April, where nearly 600,000 jobs were lost in the month.
He described those figures as āshockingā, but not as bad as predicted.
Industries that kept employers during the start of the pandemic will now start to struggle as their pipeline of work dries up, Lowe added.
Australian Prudential Regulation Authority chair Wayne Byres and Australian Securities and Investments Commission chair James Shipton will appear via videoconference before the COVID-19 committee hearing.
-AAP
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