Australia Third-Quarter GDP to Be Cut 2.5% by Victoria Lockdown

Australian Prime Minister Scott Morrison warned the lockdown across Victoria state and even tighter measures in Melbourne to contain a Covid-19 outbreak will cut gross domestic product by 2.5% in this quarter.

“The events in Victoria are devastating,” Morrison told reporters in Canberra Thursday as he outlined Treasury’s initial estimates of the economic impact. “Devastating for the Victoria economy but also the national economy. The supply chain impact, the confidence impacts, these things are obviously impacting over states and territories.”