The COVID-19 pandemic has already caused an enormous impact on Australia’s economy, with a second wave erupting in Victoria there are concerns our economy will take further hits.
Victoria has been hit the hardest. The economic output of Victoria alone will fall but 3.5 per cent, closely followed by Tasmania and Western Australia.
New South Wales, South Australia and Queensland are all expected to see falls of 2.9 per cent.
New South Wales accounts for approximately one third of the national economic output with Victoria accounting for approximately a quarter.
The closure is set to cause further setbacks for the tourism and travel industries and local businesses.
It is the first time in over a century that the border between Victoria and New South Wales is shutting. With the last time occurring in 1918-19 during the Spanish flu pandemic.
The Australian Industry Group chief Innes Willox has warned that there will likely be huge disruptions caused did to these closures and even went on to cite Cold War Germany.
“The border closure puts up a Berlin Wall between our two biggest states which represent more than half our national economy, and cuts in two our country’s main economic artery”
What are your thoughts, are the border closures the lesser of two evils?
Although the closures will cause significant economic loss during this time, some say it is preferable over the potential for further states having a ‘second wave’.