The 2020-2021 Budget, to be delivered by the Treasurer next Tuesday, will be arguably one of the most important, if not the most important since the end of the Second World War.
This year, the global economy is forecast to contract by around 4.5%. The world economy during the GFC declined by 0.1%. So in simple terms, the economic contraction we’re expecting this year in the global economy is 45 times greater than the GFC.
The scale of what is occurring today is incredibly sobering.
Never before have we experienced a global recession of this magnitude in a truly modern, interconnected world and global economy, no longer insulated by geography and old technology. Global recessions now occur in real time.
So this Budget will be necessarily different in scale to those we have seen in many generations.