Scott Morrison says the coronavirus recession is ’30 times worse’ than the GFC. Is that accurate?
After more than eight years proclaiming the need for austerity to reduce national debt and the budget deficit, the Coalition Government has been confronted with a sharp economic downturn, triggered by the global pandemic.
The Government’s response has been to stimulate recovery by committing to an unprecedented level of spending, which, it says, is justified by the severity of the recession.
Referring to the budget, Prime Minister Scott Morrison told Parliament: “It also comes at a time when we know that the economic impact on the global economy means that this pandemic recession is 30 times worse than what we saw in the global financial crisis (GFC).”
Is Mr Morrison correct? RMIT ABC Fact Check investigates.
Mr Morrison is comparing apples and oranges.
Economists contacted by Fact Check said Mr Morrison’s approach of comparing the size of the GDP contraction in each…