Page 1297 - Week 05 - Thursday, 18 June 2020
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Before COVID-19 struck, the ACT was in a robust and stable economic position. In the 2018-19 fiscal year our economy was one of the strongest performing in the nation, with economic growth of three per cent, which is well above the national growth rate. We had the lowest unemployment rate in Australia, at 2.9 per cent; the fastest rate of employment growth, at 4.3 per cent; and an all-time record level of employment in the ACT, with 240,000 jobs in our city, representing 13,700 jobs created in the territory over the year to March.
In per capita terms, the ACT had grown to be Australia’s leader in service exports, increasing by nearly 25 per cent since 2015-16, with the international education sector alone contributing $1 billion annually to our economy. The ACT had also diversified its economic base, with the establishment of almost 1,500 new businesses in that 2018-19 financial year.
We have built a strong foundation upon which we have confronted the challenges over the last few months. The government is leading on the pathway back as we implement Canberra’s recovery plan. There will be no greater priority for the territory government in the months and years ahead than the delivery of this recovery plan.
The full extent of damage from COVID-19 will be revealed in data releases in coming months. As this data becomes available, we will use it to ensure that we target government support where it is needed most. Nationally, economic growth contracted by 0.3 per cent in the March quarter as the bushfires and the early signs of COVID-19 impacts hit activity across the nation. That outcome nationally has been viewed positively, though, in light of much more significant contractions experienced across OECD economies. However, Australia is now in recession, as a further and more significant contraction will occur in the June quarter.
MADAM SPEAKER: Can you resume your seat for a moment. Mr Wall and Mrs Dunne, to allow you proper distancing, perhaps a conversation could be had elsewhere.
MR BARR: As I said, that outcome was viewed positively at a national level, in light of those more significant contractions experienced across the OECD economies. But the nation is now in recession. Interestingly, though, the ACT economy has remained more resilient as domestic final demand in the territory economy increased by up to 2.1 per cent in the March quarter, to be 4.2 per cent higher over the year. Of course, much of this was driven by spending associated with the series of unprecedented events in the ACT community over that period. In the June quarter, though, our economic activity will contract.
At 11.30 today, the Australian Bureau of Statistics will release the May labour force statistics. I can provide a brief overview of what we have observed in the ACT in April. The unemployment rate rose by one per cent, to 4.2 per cent. Underemployment has also risen, from 5.3 per cent in March to 9.3 per cent in April. COVID-19 saw the ACT lose 8,700 jobs in April. As at early June, almost 15,000 people were receiving JobSeeker payments, while around 10,700 ACT businesses had enrolled in the commonwealth JobKeeper package.
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