Media Releases

IMF Warns Against Morrison’s “Snapback” Strategy

June 25, 2020

The International Monetary Fund has warned against the sudden withdrawal of economic support, highlighting the dangers of the Morrison Government’s September “snapback” which could jeopardise the recovery before it even gets going.
 
Failing to heed the advice of the IMF, the Reserve Bank and others would mean even more Australians are left behind by this Government during the first recession in three decades.
 
The Prime Minister’s claim that Australia’s recession is not as bad as other countries like the US will be cold comfort to the hundreds of thousands of Australians excluded from JobKeeper who have been forced to join the unemployment queues.
 
The IMF’s World Economic Outlook echoed recent concerns from the OECD, the RBA, and the Australian business community about the impact of a possible “snapback” when it noted that the withdrawal of support “should proceed gradually to avoid precipitating sudden income losses and bankruptcies just as the economy is beginning to regain its footing.”
 
Unemployment is worse than it needs to be, the recession is deeper than necessary, and the recovery will be that much harder because Scott Morrison and Josh Frydenberg have bungled key programs like JobKeeper.
 
Labor wants Australian workers, businesses and communities to do well during this crisis which is why we have been making constructive contributions since the virus outbreak began.
 
Australians have worked together to combat the virus, but more work must be done by the Morrison Government to ensure the hardest-hit Australians are not left out and left behind during this recession.
 
THURSDAY, 25 JUNE 2020

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