Westpac has cut its outlook for the Australian economy by revising the forecast for the unemployment rate higher as the coronavirus outbreak is causing larger-than-expected economic disruptions.
Australia’s unemployment rate could rise to 11% by June.
A sustained recovery will likely commence from the fourth quarter.
Last week we forecast a peak in the unemployment rate of 7%. Since then we have seen the rollout of more extensive shutdowns than we had originally envisaged.