OECD issues warning to Australia over the cost of a second COVID-19 wave

A second wave of COVID-19 infections would wipe another $25 billion from Australia's economy, according to the OECD.

The OECD’s latest economic forecast highlighted Australia’s success in curbing the coronavirus outbreak compared with other nations but warned of more economic pain should there be a second spike in infections.

The Organisation for Economic Cooperation and Development forecast a five per cent hit to GDP in the December quarter, and predicted that would rise to 6.3 per cent with a second wave.

The Organisation also warned Australia’s success would be hindered if the government’s JobKeeper scheme was wound back too quickly, and urged Australia to invest in infrastructure and social housing to boost the national recovery.

Treasurer Josh Frydenberg said the outlook for Australia was the third best among all 36 OECD members.

“We will continue to do all that is necessary to ensure Australia bounces back stronger on the other side of this crisis,” he said.

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