As Australia moves into the next phase of its fight against COVID-19, many are calling for economic reforms.
Josh Frydenberg, Treasurer of Australia, recently confirmed that the federal government expects a 10% drop in GDP. This would mean a staggering $4 billion lost per week.
The government’s recent economic stimulus package has countered some of the economic impact of COVID-19, but Australia still finds itself in a perilous position, even as life is starting to get back to some sense of normality.
Many are arguing that the country must enact economic reforms to ensure that the economy can counter the negative impacts of the virus and get back on the road to growth.
In a recent speech, Governor of the Reserve Bank of Australia Philip Lowe suggested that policymakers look at pushing for reforms in the following areas:
- Income and consumption tax;
- The pricing and investment in Australian infrastructure;
- How to ensure the workforce is trained and adaptable for the future;
- Regulations revolving around innovation and technology; and
- How the industrial relations system is managed.
Economists in the country believe any return to normality will be a long and arduous process, and will depend on how well the country can control the virus and avoid a second wave of infections.
For a country that has weathered major economic crises and posted positive GDP growth year-on-year, it is hoped that economic reforms can play a major role in ensuring that the recession is short lived.