Business
Communications and political strategist and Sky News contributor, Kristy McSweeney, joins this episode of Smarter Cities. As Australia struggles with a potential second wave of COVID-19, the depth and impact of locking down the economy, and providing unprecedented publicly funded support, is becoming apparent. Australia has a forecast budget deficit of almost 10% of GDP in 2020-21, and a sharp increase in net debt to over 35% of GDP, levels unimaginable less than twelve months ago. Massive stimulus packages announced in most nations to fight the virus has left the majority of advanced economies with net debt to GDP ratios above 100 per cent, with the red ink likely deepening as the fight continues. With governments increasingly being called on to intervene harder and faster to protect populations, keep people employed and chart a pathway out of the pandemic, and with a private sector waiting for COVID-19 conditions to ease, has COVID-19 changed the role of the public sector in the economy? Is this sustainable?