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Surviving in Victoria's second wave

Decisions on wage and rent supports will decide whether battered Victorian businesses can live through future flare-ups.

If there is one point that has united most economists during the coronavirus crisis, it is that ending the economic crisis requires fixing the health one. Victoria’s second wave brings this home to devastating effect. The virus, and the restrictions on daily life necessary to keep it under control, have snuffed out the nascent economic recovery in our second most-populous state.

Even before the latest lockdowns, Victoria’s economy had been hit particularly hard by the crisis. The number of jobs in Victoria fell by 7.6 per cent between mid-March and mid-June, the biggest fall of any state or territory.

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Danielle Wood is the chairwoman of the Productivity Commission.
Matt Cowgill is a senior associate at the Grattan Institute.

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    Original URL: https://www.afr.com/policy/economy/surviving-in-victoria-s-second-wave-20200708-p55a18