An historic day for Australia today, with the federal treasurer to reveal an unprecedented level of debt due to the coronavirus crisis.
Treasurer Josh Frydenberg is due to hand down an economic statement today, which is tipped to paint a pretty bleak picture of Australia’s future.
It’s predicted to be around $200 billion dollars in the red, which is roughly four times higher than what we saw during the Global Financial Crisis.
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It’ll be the highest level of debt since World War Two, with future generations having to pay off the crisis for years to come.
Almost $300 billion has been spent in response to the crisis so far, in stimulus and support measures which saved millions of jobs and businesses.
While, tighter restrictions in Victoria alone have slashed around $3 billion from the national economy already.
Net debt is tipped to sit around the $500 billion mark.
The treasurer will provide an economic and fiscal update today, which will include budget estimates and forecast, but the full budget won’t be handed down until October.
Josh Frydenberg says he’s confident the economy will bounce back, despite admitting budget figures will be shocking.
He told Nine yesterday that it won’t be all doom and gloom.
“We remain optimistic about what the Australian economy can do and is doing to recover from this unprecedented economic shock,” he said.