AU Extended lockdown for NSW may spark a recession

The more dangerous Delta variant of the Coronavirus has led to an increased number of cases in NSW; the state will now remain in an extended lockdown until at least the end of August 2021.

The current lockdown has repeatedly been extended, as the infected number of people continues to increase. There is potential for a longer lockdown beyond August if the case numbers do not start dropping.

Some members of the community are breaking lockdown orders and causing the twice as infectious Delta strain of the virus to spread among some region. Economists have expressed concerns that extended lockdowns will result in a second recession. To assist the economy’s bounce back, New South Wales Premier, Gladys Berejiklian will be allowing construction sites to start back up again since its discontinuation on July 19th.

There are still relief packages being sent out by the government to affected businesses to help pay peoples wages throughout lockdown, along with individual and household assistance.

Sydney and Melbourne are home to most of Australia’s population and are responsible for most of Australia’s economic output according to analysis from SGS Economics and Planning. With Victoria’s lockdown eased, the economy might still have a fighting chance.

Luckily, after lockdown there is typically a resurgence in activity as people are eager to get back into normality. It is a waiting game to see how Australia fairs once the Sydney lockdown lifts once the number of infected cases is finally down.

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