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- Pandemic will hit government budget, population over next 40 years - Australian government
Pandemic will hit government budget, population over next 40 years - Australian government
Reuters reports that according to official forecasts, the coronavirus-induced border closures and lockdowns in Australia will have an enduring impact on government coffers and population growth.
The Australian government forecasts the budget will remain in deficit for at least another 40 years, a departure from the ruling Liberal-National coalition's long-established "debt-and-disaster" rhetoric.
"The economic crisis associated with the COVID-19 pandemic has placed significant demands on public finances in Australia and around the world. While Australia's stronger-than-expected economic recovery has flowed through into the fiscal position, the effects of the pandemic on the budget are expected to remain into the long term," the report said.
Australia's economy bounced back strongly from its first recession in three decades in the second half of last year helped by earlier-than-expected reopening from coronavirus shutdowns and massive monetary and fiscal stimulus.
"The economic recovery is well underway, but some effects from the pandemic will persist," the report says.
Australia now expects its population to total 38.8 million by 2061, down from its last forecast in 2015 when it saw it hitting 40 million by 2056. Its population currently stands at 26 million.
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