National Debt – What Does it Mean for the Economy?

High debt is scary in any way you want to look at it. Australia has not seen national debt to GDP levels as was announced by the Australian Government’s Treasurer since the end of WW2. However, without the use of debt, the Australian health and economic response would not have been near as effective. National debt isn’t the bad story here. The lives affected and lost to the pandemic and the economic fallout that we experience through job losses is.

In line with the global economic outlook, Australia is facing an economic downturn that is expected to rival the great depression if global government responses are insufficient in tapering falls in demand of goods and services. Government spending has been targeted to reinvigorate confidence in people’s health, reduce business uncertainty and stabilise labour markets through policy such as Jobkeeper, Jobseeker and business transfers.

There are ways to recover from this pandemic and recession. Global supply chains have been impacted severely and should be filled with Australian exports of goods and services. Domestic supply chains can be repaired quickly, nationally. We saw this through business responding to the need for PPE during the pandemic and they continue to do so. Finally, local recovery is generated from buy and supply local approaches. Look to your neighbour as they may have what you need and are most likely doing it tough too.

RDANI are supporting the Northern Inland region by providing a link between all three tiers of Government, business and the community. A brief overview of national debt and measures that support economic recovery is available to help our region get through this pandemic and recession. We are positioned to support with grants, economic impact analysis and networking with the view of promoting long-term regional economic growth. Let’s get through this pandemic together.

You can view the full report on the effect of the National debt by our economist, James Pryor on our website.