How Australia’s Covid recovery spending compares with the rest of the world
“That said, it is very clear from this budget and it is very clear from Treasury and Reserve Bank analysis of how low the unemployment rate can get before inflation really starts moving that we are going to be targeting an unemployment rate around 4% or maybe even lower ... That’s a lot of jobs that need to be created, a lot of people that need to be put to work.”
In total the federal budget papers estimate that A$291bn has been spent in direct economic support since the beginning of the pandemic. This equals 14.7% of GDP.
However, this is lower than the spending estimate of the Centre for Economic Policy Research’s economic stimulus index, which includes state government revenue and spending measures.