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Is the stimulus enough to stop a recession?

Article image for Is the stimulus enough to stop a recession?

The government’s stimulus package is heavily weighted towards supporting businesses, but is it enough to avoid a recession and could they have done more?

Economist Warren Hogan, Industry Professor at UTS Business School tells Brooke Corte there’s still a big question mark over the effectiveness of the stimulus because we don’t know how severe things will get in terms of the spread of coronavirus. However, he believes “what they have done here is bold – it is immediate”.

“This is a huge kick to the economy.

“In the end, it might add about 0.3 or 0.4 to GDP growth in the quarter, which might be enough to keep us out of technical recession, but more importantly, this is putting a floor under demand. It’s keeping money in the economy.

“You could argue a little bit more for households would be one improvement on it.”

Click PLAY below to listen to the full interview

Image: Getty / d3sign

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