Australia losing $4b in economic activity every week coronavirus restrictions remain in place Treasurer Josh Frydenberg says

Australia is losing $4 billion in economic activity every week COVID-19 bans remain in place, new Treasury figures predict.

• SA clubs, pubs plead ‘please, let us open’
• Mother's Day given clean bill of health in SA
• Reedem these great rewards with your Advertiser+ subscription

Australia must get “back into work” as we are set to lose $4 billion in economic activity every week COVID-19 bans remain in place, Treasurer Josh Frydenberg says.

The restrictions are set wipe about $50 billion from the national economy come June, Mr Frydenberg will tell the National Press Club on Tuesday.

“We must get people back into jobs and back into work,” Mr Frydenberg will say.

“For every extra week the current restrictions remain in place, Treasury estimates that we will see close to a $4 billion reduction in economic activity”.

But Treasurer Josh Frydenberg warns that if lockdowns had mirrored eight weeks in Europe, it would have doubled the damage and seen GDP fall by almost a quarter.

In a speech on Tuesday, Mr Frydenberg will address the need to get people “back into jobs and back into work” in the economic fight back.

“Some of the hardest hit sectors like retail and hospitality are among the biggest employers, accounting for more than two million employees between them,” Mr Frydenberg is expected to say.

“History shows that the longer people are unemployed, the harder it is to get a job.”

On top of unemployment – expected to reach 10 per cent come June – and a decline in productivity, credit card data from the banks reveals Australians have tightened the purse strings.

Spending on arts and recreational services, accommodation and food services nationwide fell between 60 to 70 per cent respectively in late April, compared to the previous year.

Mr Frydenberg says despite the toilet paper boom, overall consumption in South Australia fell 16.8 per cent in March according to NAB data.

Australia’s GDP is estimated to fall by 10 to 12 per cent, or $50 billion, in the June quarter as a result of the restrictions and the unprecedented $320 billion spend on rescue measures.

However, if they had mirrored the eight-week European style lockdowns then the economic blow would have doubled to 24 per cent, or $120 billion.

“This was the cliff we were standing on,” Mr Frydenberg’s speech reads.

“This would have seen enormous stress on our financial system as a result of increased balance sheet impairments, widespread firm closures, higher unemployment and household debt.

“It underlines the importance of getting people back to work as soon as possible to avoid the long-term economic and social impacts from a high unemployment rate.

“While the shadow of the economic shock created by this crisis will be both profound and long-lasting, we can remain optimistic about our future.”

Mr Frydenberg says Australia has the advantage of “real progress” in suppressing the spread of the virus without having to resort to a full lockdown as has been the case with some other nations.

“Significant sectors of our economy like agriculture, mining and construction have been able to adapt to the new health restrictions and in most cases continue to operate,” he is expected to say.

“The values and principles that have guided Coalition reforms in the past must guide us again in the future: encouraging personal responsibility, maximising personal choice, rewarding effort, and risk taking while ensuring a safety net which is underpinned by a sense of decency and fairness”