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Governments told to spend more as Victorian restrictions drag down national economy – Sydney Morning Herald

The RBA and the IMF have both urged governments to keep spending to minimise the growing economic impact of Victoria’s stage four lockdown.

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It now expects the economy to contract by 6 per cent this year before growing by 5 per cent in 2021. The bank believes unemployment, which the federal Treasury only a fortnight ago forecast to peak at 9.25 per cent by December, will reach 10 per cent by year’s end and take at least two years to gradually fall to 7 per cent.
Unemployment at 10 per cent would mean an extra 340,000 people out of work on top of the almost 1 million already without a job.
Dr Lowe said the economy faced an “uneven a…

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