‘It’s Going to Be Tough’: Over $700 Million Lost per Week in One Australian State as COVID-19 Lockdown Hits Economy Hard

Victoria’s economy has lost over $700 million (US$508 million) per week since the start of the lockdown, while business and consumer confidence continue to remain at low levels.

This comes as Melbourne claims the world record for the longest lockdown city in the world, overtaking Argentinian capital Buenos Aires for the number of days in lockdown.

“We are going to get past this,” Victorian premier Daniel Andrews told reporters on Oct. 3.

“We are going to end this lockdown and open up, and all that we will enjoy then will be a result of all that we have given.”

But the premier’s sentiments were not shared by the chief executive of Australian Industry Group, Innes Willox, who said Victorians fear the sixth lockdown may not end in 3 weeks as promised by the premier.

“Melbourne is pretty much a broken place, and 246 days of lockdown would do that to you—that’s eight months of lockdown in 18 months,” Willox told Sky News.

“The economic devastation is huge—its emotional devastation, it’s impacted our education, our economy, and Melbourne’s resilience—it’s been very tough and will continue to be tough.”

Former Victorian premier Jeff Kennett also criticised the lockdowns saying that city’s longest lockdown title was “nothing to be proud of.”

“[T] here’s a massive loss of trust in the leadership of Victoria,” Kennett told the Herald Sun.

“What it represents is a great deal of inconvenience, hardship, loss of industry, businesses and major events,” he said.

According to the state government’s statistics, Victoria’s tourism economy experienced a significant decline of 50 percent or a loss of $12.7 billion in the year to June 2021 compared to the previous year.

Meanwhile, total visitors to and within Victoria decreased by 33 percent from the year ending June 2020 to 53.7 million in the year ending June 2021—representing a loss of 26.7 million visitors.

“Melbourne’s lost all of the attributes that made it strong, events-strong culture, the education sector was so important to Victoria,” Willox told Today host Karl Stefanovic.

“Events are really the core part of Melbourne,” he said.

“Those sorts of things that are really important to Melbourne’s status and sense of well-being, and we’ve lost two grand finals.”

On Sept. 30, the Victorian government and the federal treasurer announced a $2.27 billion support package for businesses most affected by restrictions as Victoria reaches the 70 percent, then 80 percent fully vaccinated thresholds on the state’s Roadmap to Deliver the National Plan.

“Our economy has bounced back strongly before once restrictions are eased and is well-positioned to do so again when lockdowns lift,” Federal Treasurer Josh Frydenberg said in a statement.

According to Victoria’s roadmap, Melbourne’s lockdown is due to end on Oct. 26 when 70 percent of Victorians are fully vaccinated, with fully vaccinated Victorians given more freedoms.

However, Victoria will not match up with the National Plan until Nov. 19, when 80 percent of people over 12 years old are vaccinated.

“People are at their wit’s end. They want their kids back at school; they want businesses to reopen,” Frydenberg said.

“They are getting the jab in record numbers because they believe that’s the part of the compact they have with their governments—that when they get the jab, the restrictions will ease.”

Ernst and Young chief economist Jo Masters told News Corp in June that Australia’s vaccination drive was critical in limiting the economic impact from lockdowns.

“Locking down is a health decision but has an economic consequence (but) we know that not tackling the virus is a worse outcome,” Masters said.

Meanwhile, protesters took to the streets of Melbourne on Oct. 2 following an announcement by the Victorian premier Daniel Andrews mandating vaccinations for “authorised workers.”

On Oct. 4, Victoria recorded 1377 new cases, with 82 percent of Victorians over 16 having received their first vaccine dose and 52.1 percent fully vaccinated.

Henry Jom

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