Chris Richardson from Deloitte Access Economics says the recovery will be big
Just as Victoria’s recovery has beaten many expectations, so too will Australia’s recovery out of the COVID recession, according to Dr Richardson.
“Business conditions after vaccines will look very different to those before vaccines,” he said.
He said because the downturn was so sharp and the impact so big, the opposite would happen on the way out.
“There’s a rapidly growing possibility that this recession — as deep as it’s been — will see a more V-shaped recovery than our current forecasts allow for,” he said.
History shows Australia’s biggest periods of growth have followed economic downturns.
He says while recessions are terrible, it’s important to remember a downturn means there are, “unemployed people who can be employed again, empty shops and offices that can be filled, and businesses that can start to work to their full capacity again“.
“The bigger the downturn, the bigger the recovery. That’s an equation we all need to keep front of mind.“