SYDNEY: Australian economic future was “unusually uncertain” while growth was expected to remain in the slow lane without a medical breakthrough to prevent and treat COVID-19, the head of the country’s central bank said on Thursday.
The remarks come as Australia re-opens its economy sooner than expected. The country has reported just over 7,000 COVID-19 infections with 100 deaths, well below the disturbing outcomes in several other advanced nations.
Reserve Bank of Australia (RBA) Governor Philip Lowe said early evidence showed countries with fewer restrictions were also experiencing very large economic contractions, suggesting individuals and businesses were reluctant to spend in the current environment.
“Restoring confidence on the health front is a precondition for a strong (economic) recovery,” Lowe said, responding to a question during an online panel discussion.
“That would help both in Australia and globally,” he added.
“We might get a vaccine, we might get some anti-viral medication, but it’s also possible that we don’t. So we have an incredible lot riding on the work of the scientists.”
In his opening remarks, Lowe said Australians were living through the biggest and the most sudden economic contraction since the 1930s and the future was unusually uncertain.
Read more: PM Imran calls for global response to deal with Coronavirus challenge
