Invest
Federal Treasurer backs economic recovery as NSW emerges from lockdown
EXCLUSIVE: As New South Wales today transitions out of lockdown, and with Victoria soon to follow, federal Treasurer Josh Frydenberg has told Momentum Media he’s optimistic about Australia’s economic recovery but urged the nation not to get complacent.
Federal Treasurer backs economic recovery as NSW emerges from lockdown
EXCLUSIVE: As New South Wales today transitions out of lockdown, and with Victoria soon to follow, federal Treasurer Josh Frydenberg has told Momentum Media he’s optimistic about Australia’s economic recovery but urged the nation not to get complacent.
Federal Treasurer Josh Frydenberg believes that despite a short-term contraction triggered by lockdowns in New South Wales and Victoria, the Australian economy is set for a “very strong recovery” on the back of government support for business, rapid advancement to 80 per cent vaccination and a strong labour market.
His comments come on the day that New South Wales begins to reopen after three months of hard lockdown, hitting parts of Sydney particularly hard.
Speaking to Alex Whitlock, director of Momentum Media, the business behind nestegg, Mr Frydenberg said that the “once-in-a-century pandemic” had caused “the biggest economic shock since the Great Depression”.
Reflecting on when the pandemic first hit, the Treasurer conceded that Treasury “had feared the worst”, with the department forecasting that the unemployment rate could reach 15 per cent with “hundreds of thousands of fellow Australians lined up outside Centrelink”.
“People were fearful of losing their homes, and their lifetime savings. And for some, those images were reminiscent of what we saw in the Great Depression,” the Treasurer said.
“We responded with JobKeeper and, immediately, it boosted both consumer and business confidence, and it suddenly saw employers, rather than sacking workers, hold on to them.”
Mr Frydenberg said that JobKeeper was “a very important intervention” and “a major economic support program; a combination of a wage subsidy and economic stimulus”.
“It had the desired impact in that it kept the formal connection between employers and employees. But it also laid the foundation for what was a very strong recovery, saving — according to the RBA — at least 700,000 jobs,” he added.
The Treasurer stated that the economy had “shown remarkable resilience” despite the “game-changer” Delta variant of the virus.
“Today, our economy is larger than it was going into the pandemic, and that our employment levels are higher than they were going into the pandemic [currently at a 12-year low of 4.5 per cent], does give people confidence that we have got through this crisis in a position that is stronger than that of many other comparable jurisdictions,” Mr Frydenberg said.
Outlining that the vaccination targets of 70 to 80 per cent are now “well in sight” for the two states, with New South Wales starting to reopen from today and Victoria “hopefully” not far behind, he said that “confidence will start coming back into the economy, and — of course — the jobs will come back”.
“It is important, though, that we keep [up] momentum in the vaccination program, and everyone who’s eligible [gets] vaccinated because it not only protects themselves, but also protects the broader community,” he said.
“I’m also very confident that as restrictions ease, we will see people back in work, and we’ll see businesses reopen and monetary policy will stay accommodative.”
He also pointed to the $200 billion on household balance sheets “that was not there this time last year”, as well as business balance sheet growth and “strong pipelines of investment in both the housing sector” (bolstered by the HomeBuilder program), but also in machinery and equipment off the back of the expanded instant asset write-off.
“[But] that’s not cause for complacency,” he said. “Far from it.”
Looking back at the impacts of the pandemic, the Treasurer and deputy leader of the Liberal Party told Mr Whitlock: “[It was] certainly not the economic environment I thought I would be involved in as the Treasurer.
“In fact, I was pleased to deliver the first balanced budget in 11 years, was looking forward to delivering the first surplus budget in 12 years, and — even after the terrible bushfires and the ongoing drought — we were on track for that.
“And then the pandemic turned the world on its head; there was no rulebook.”
RELATED ARTICLES
-
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
-
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
-
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
