Is it closing in on the time to ease the shutdown strategy and ‘Snap Back’ the economy?

If the rate of infections continue to reduce, the jungle drums will beat faster and faster to open up the economy, as it increasingly appears that we are on the other side of the infection trajectory.

The inherent risk is that the reduction in infections may not last after we re-open economic activity. This means we may have spikes over the year until testing of those carrying the anti-bodies can be done en masse and anti-viral drugs are proven to work and available in large quantities.

Singapore, which has been a success story, provides an example of a nation that has kept the outbreak under control, but have recently had a cluster of outbreaks in infections and have responded by increasing the relatively limited restrictions on the population.

This will be the ongoing risk, and is why our government will need to keep the proverbial foot on the throat of the virus until it is squashed, possibly until the numbers are minute or non-existent as China did with the eradication process in Hubei, where the virus originated.

This will be the ongoing risk, and is why our government will need to keep the proverbial foot on the throat of the virus until it is squashed, possibly until the numbers are minute or non-existent as China did with the eradication process in Hubei, where the virus originated.

The ‘Snap Back,’ to use the Prime Minister’s new phrase over the weekend, will probably be staggered, to ensure we do not get complacent, and to minimise the risk of new outbreaks occurring.

Overall, it has been a very positive week for team Australia.

Hopefully Australia can remain the wonder from down under, as we were post the GFC by managing to not slip into a recession. Notwithstanding that our world record run without having a recession since 1991, is about to end.

If we can manage this crisis better than most countries, the positive sentiment globally will hold the nation in an enormously strong position economically. International investment is fundamental to a capital importing country like ours.

By |2020-04-08T12:29:13+10:00April 7th, 2020|

About the Author:

David Johnston
David is the Founder and Managing Director of Property Planning Australia, author of ‘How to Succeed with Property to Create your Ideal Lifestyle’, co-author of ‘Property for Life – Using Property to Plan Your Financial Future’ and a widely-published media commentator. With more than 20 years of experience, David is passionate about educating others to make informed, and ultimately, more lucrative property investment decisions. David established Property Planning Australia in 2004 – with the vision to educate and empower Australians to make successful property, mortgage strategy and money management decisions.  Property Planning Australia’s operations have earned acclaim and national industry awards for its unique fusion of property planning, education, money management, mortgage strategy and risk management. All supported by multi award winning customer service.
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