Australia's economy to shrink 10% in first half of 2020: RBA Governor

[SYDNEY] Australia's economic output is likely to fall by around 10 per cent in the first half of 2020, with most of this decline taking place in the June quarter due to the hit from the Covid-19 pandemic, the central banker governor said on Tuesday.

The unemployment rate is likely to be around 10 per cent by June, Reserve Bank of Australia (RBA) Governor Philip Lowe said. It was 5.2 per cent in March.

"Whatever the timing of the recovery, when it does come, we should not be expecting that we will return quickly to business as usual," Mr Lowe said in a speech broadcast live on the RBA's website.

"Rather, the twin health and economic emergencies that we are experiencing now will cast a shadow over our economy for some time to come."

REUTERS