Is Australia in a V shaped Recovery Zooming from the expected ‘U’ Style

  • Jun 06, 2020 AEST
  • Team Kalkine

Many policy experts and corporate executives have been predicting a V-shaped recovery from coronavirus, i.e. a quick recovery in the economic growth after a steep decline. It implies that the recession lasts only a few quarters before the economy returns to growth to pre virus levels. Also, a U-shaped recovery is like V-shaped recovery with a mere difference that it lasts longer.

1. Easing lockdown - As lockdown measures are relaxed, people will actively start looking for work that is expected to lift the economy.

2. Stability in hours worked - Economists are of the view that the most terrible of coronavirus economic contraction unemployment is over with the JobKeeper subsidy helping in increased employment in the arts, recreation and hospitality sectors.

3. JobKeeper savings can help fund stimulus - A recent announcement by Treasury that JobKeeper Payment will cost only $70 billion instead of the original forecast of $130 billion has freed up some funds for the government.

4. Treasury expects major collapse in employment over in June.

5. Substantial fiscal support - Dr Kennedy asserted that fiscal policy would play a central role in getting the economy back to full employment levels. He added that it will now be more about the demand and consumer sentiment as the economy reopened

#Australia #covid19 #Recovery #Kalkine

 


Disclaimer
The video has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above video is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK