Victoria state coronavirus curbs to cost Australia up to $700 million a week

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Australia could take an economic hit of as much as A$1 billion ($700 million) each week because of coronavirus restrictions reimposed by Victoria state, Treasurer Josh Frydenberg said on Wednesday.

Renewed lockdown measures in Victoria’s capital city of Melbourne will kick in from midnight for at least six weeks, closing down cafes, bars, restaurants, hairdressers and gyms, and confining around 4.9 million people to their homes except for essential business.

“The cost to Victoria is up to A$1 billion a week, and that will fall heavily on businesses,” Frydenberg told the Australian Broadcasting Corporation. Frydenberg said the estimate was based on Victoria accounting for around a quarter of the national economy. Authorities hastily set up a system to issue travel permits to people who cross the highly porous border daily as hundreds of police officers and army troops were deployed to monitor its closure. Among people they said would be granted a pass were those living in border towns who commute regularly for work and school.

 

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