SYDNEY, Australia – KPMG Australia has issued a report today containing their insights about the coronavirus pandemic.
The advisory services provider affirmed that the disease, also known as COVID-19 is a serious hazard to the well-being of the members of the Australian society.
The company said that the people, therefore, need to look after themselves, their family members, their friends, and the locale where they reside.
Based on the statement that the multinational professional services network released, the company backs the latest stimulus measure of the Government of Australia.
The advisory firm said that businesses and consumers would typically lose their confidence during uncertain times, based on Australian broadcaster, ABC’s report.
However, KPMG suggested these groups in the nation to believe the government-issued remedy last week, amounting to $17.6 billion.
Also, the advisory company remarked that the enterprises and the public should feel confident that such an emergency stimulus package is a trustworthy one.
It is a type of aid that the government could scale up or extend if needed, the advisory services provider relayed.
In the report, KPMG cited that, without the Commonwealth Government’s emergency stimulus package, the gross domestic product of Australia this year would become considerably lower.
Furthermore, the likelihood of a recession happening in the country is high, they remarked.
Hence, the enterprises and the people should feel convinced that the Australian Government’s policy package is a reliable solution.
It would make sure that Australia does not descend into a more dreadful and prolonged financial crisis, KPMG remarked.
Brendan Rynne works as the head economist of the Australian branch of the advisory firm.
He pointed out that panicked shoppers who stockpiled hand sanitizers and toilet paper lately agitated consumer and business confidence.
Rynne relayed that social media fueled these recent panic buying scenarios.
Besides, the economic expert confirmed that there had been plenty of situations displaying trepidation in the Australian society recently.
This anxiety in the community would change into disruption within the country’s economy, Rynne said.
Nevertheless, the KPMG executive informed the public that they should not feel quite disturbed at all.
After all, history demonstrates that pandemics are ordinary occurrences. Plus, they pass eventually, Rynne explained.
In their latest report, KPMG also mentioned that they believe the possibility of the coronavirus pandemic becoming a horrific situation remains low.
This belief is despite proofs exhibiting the latest heavy nosedives in the financial markets and families engaging in panic buying.
Meanwhile, the latest report of the advisory company predicted that the economy of Australia could take nearly ten years to recuperate.
It would struggle from the adverse impacts of the coronavirus pandemic, the document informed.
The company’s statement explained that this situation is possible, even after the Federal Government’s cushioning of the economy with the stimulus plan.
Moreover, the multinational firm said that the economic growth of the country would decrease this year by 0.9 percent.
These figures would total to a hit worth $17 billion, before gradually recovering by next year.
The report of the advisory group affirmed that the possibility of a complete international economic downturn is not approaching.
However, this pessimistic scenario is now very genuine, the multinational firm said.
Plus, the coronavirus health crisis is actively spilling over the countries’ economies around the world.
This condition makes economic damage possible to happen for some time, and would possibly get aggravated, KPMG said.
The caveat of the advisory services provider came after the Federal Reserve of the United States cut interest rates by a full percentage point to almost zero.