Melbourne city economy reached $104b a year before pandemic, but shutdowns have hit it hard
Central Melbourne was booming pre-pandemic, with the economy reaching a record level, but hard shutdowns have left the city deserted and businesses in desperate need of more stimulus.
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Inner Melbourne’s annual economy hit a record $104 billion before the pandemic, a city council report says.
But the shutdowns which have turned the CBD into a ghost town are expected to cost the city several billion dollars over the next year, with the City of Melbourne pleading for more assistance to businesses.
Early data from the council’s Census of Land Use and Employment has revealed that the municipality reached a record $104 billion in gross local product in 2019.
Bigger than the combined economies of Tasmania, Northern Territory and the ACT, Melbourne’s central city economy usually hosts about 500,000 jobs, including 72,000 in Docklands.
Federal Treasurer Josh Frydenberg recently said that the city’s stage four shutdown would cost the national economy $1 billion a week.
It’s believed that the pandemic’s annual cost to inner Melbourne’s economy will be at least $10 billion.
Lord Mayor Sally Capp welcomed the $20 million in targeted support for CBD businesses from the state government, but said more was needed to kick start the city economy.
“We’re preparing a package of infrastructure projects to present to the Australian and Victorian governments,” she said.
“These shovel-ready projects would create jobs, stimulate our economy and protect Melbourne’s liveability.”
Ms Capp said that many of Melbourne’s previous strengths had been hit hard by the “necessary” pandemic measures.
“Melbourne is a city that specialises in bringing people together for simple delights,” she said.
“Such as lingering over coffee and cocktails in tiny Bohemian bars, boutique shopping after a show, sharing joy or heartbreak in a pulsating stadium and getting among it for a late night with friends enjoying a few drinks and live music.”
“The central city is facing unique challenges so we need to make sure we are open for business as soon as the restrictions lift.”
The full land use and employment census report will be released later this year.
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