Treasurer Josh Frydenberg has conceded the federal government has had to spend in an “unprecedented fashion” to avoid a second COVID-19 recession. Speaking exclusively to Sky News Australia, Mr Frydenberg said the pandemic was the “biggest economic shock” since the Great Depression, but says Australians can be filled with “a lot of confidence” for the nation’s recovery. “Well, we’ve certainly had to spend in an unprecedented fashion because we’ve faced the biggest economic shock since the Great Depression,” he said. “If you remember back last year, Treasury thought unemployment could reach as high as 15 per cent – more than two million Australians unemployed, that the economy could see a contraction of 10-12 per cent and even higher if the restrictions were in for longer. “But we responded with JobKeeper, with the JobSeeker coronavirus supplement … and that full court press enabled Australia to have one of the strongest recoveries of any advanced economies across the world. “Today’s numbers do show that the economic comeback is on, they are an improvement of around $8 billion to the budget bottom line to the three months to September and it’s off the back of more people getting into work and off the back of more businesses reopening. “We know the Australian economy is very resilient … we’re not without challenges but we can also go forward with a lot of confidence.”
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