Treasurer Josh Frydenberg delivers ‘sobering’ economic forecast, with 8747 jobs in NT to return soon

THE Federal Treasury forecasts the return of 8747 jobs in the NT once most restrictions are lifted, but that is still a lot fewer than the 11,400 jobs already lost since the COVID-19 shutdown began

THE Northern Territory can claw $124 million back into its economy each month if the country successfully follows all three stages out of coronavirus shutdown.

But the Federal Treasury estimates, which forecasts the return of 8747 jobs in the NT once most restrictions are lifted, is still less than the 11,400 jobs already lost since the shutdown began and a far cry from the 21,400 jobs expected to be lost by the end of June.

The Chamber of Commerce NT said it was concerned about the “significant gap” of jobs restarting versus jobs lost.

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“We are certainly in for some pain,” chief executive Greg Ireland said.

Yesterday, Treasurer Josh Frydenberg — on the day he was meant to hand down the “back in the black” budget he forecast last year — instead delivered a “sobering” state of the economic impact of coronavirus.

Treasurer Josh Frydenberg delivers a ministerial statement on the Australian economy in the House of Representatives at Parliament House on Tuesday. Picture: Sam Mooy/Getty Images

He signalled there would be a “significant increase” in government debt without specifying a dollar figure, though Deloitte Access Economics has predicted a $143.1 billion black hole in the nation’s finances due to the health crisis.

Mr Frydenberg said Treasury was forecasting Australia’s GDP to fall by more than 10 per cent in the June quarter, calling it “our biggest fall on record”.

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He warned that Australia risked $4 billion, and the NT $40 million, a week if physical distancing was ignored and restrictions were imposed again.

Health Minister Natasha Fyles, reiterating the government’s position, said any response to an outbreak in the NT would be targeted to that specific area.

Pubs, cafes and restaurants are set to open in the NT on Friday, followed by a larger rollback of coronavirus restrictions on June 5.

Chief Health Officer Dr Hugh Heggie said he was “personally terrified” as lockdown measures eased, warning Territorians to keep conscious of physical distancing and hand hygiene to ensure the NT didn’t suffer a “second wave” of infections.