Coronavirus to lower Australia Q1 GDP by 0.5 pct points -Treasury

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Wayne Cole Reuters
John Mair Reuters
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Credit: REUTERS/DAVID GRAY

Australia's Treasury Department estimates the coronavirus will detract at least half a percentage point off growth in the first quarter of 2020, but says it is too early to make a longer-term assessment of the impact of the virus.

SYDNEY, March 5 (Reuters) - Australia's Treasury Department estimates the coronavirus will detract at least half a percentage point off growth in the first quarter of 2020, but says it is too early to make a longer-term assessment of the impact of the virus.

"At this stage we expect the virus to detract at last half a percentage point from growth in the March quarter 2020," Treasury Secretary Steven Kennedy told a parliamentary committee in Canberra.

"This preliminary estimate takes into account the direct impacts on tourism, international education exports and some exchange rate effects. It does not include supply-chain disruptions or other broader impacts."

The estimate is in line with an estimate made by the Reserve Bank of Australia.

(Reporting by Wayne Cole and John Mair Editing by Chris Reese)

((john.mair@thomsonreuters.com; +612 9321 8151;))

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