Coronavirus QLD: State economy to bleed $10 billion over two years as impact of virus hits

The Queensland economy will bleed $10 billion over the next two years due to the devastating impacts of the coronavirus on every business, Deputy Premier Jackie Trad says.

THE Queensland economy will bleed $10 billion over the next two years due to the devastating impacts of the coronavirus on every business, Deputy Premier Jackie Trad says.

Announcing $500 million in interest-free loans for businesses to help them keep Queenslanders in jobs, Ms Trad said no part of the workforce wouldn’t be impacted by Covid-19 and the ramifications would be felt for years.

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She said the latest modelling had the impact to June 30 at $3.4 billion.

“Three weeks ago, Queensland Treasury modelled the impact at $900m – $1.7b to the Queensland economy this financial year, and $2.5b over three years,” she said.

“Queensland Treasury have updated their economic forecast based on Queensland Health’s local contagion attack rate of 25 per cent and now anticipate the impact to the Queensland economy to be $3.4b this financial year (19-20) and likely $10b over the two financial years.

A staff member in protective medical clothing moves through the arrivals area at Brisbane International Airport. (Photo by Lisa Maree Williams/Getty Images)

The Treasury called on banks to relax rules for business now, including offering interest-only repayments on loans and overdrafts to help free up cashflow to relieve pressure on them.

“While we have made preliminary estimates of its impact, the rapidly unfolding nature of this crisis means that these estimates become obsolete almost as soon as they are made,” she said.

“As RBA Deputy Governor Guy Debelle has said: ‘It is just too uncertain to assess the impact of the virus beyond the current quarter’.

“The Palaszczuk Government will do everything we can do support businesses, to support workers, and to support the community, so that when we do get past this pandemic, our economy is in the best possible position to rebound as strongly as we can.”