Chat with CCIQ’s Jack Baxter on collapse in business conditions & confidence

I spoke with CCIQ Economic and Policy Advisor Jack Baxter earlier today regarding the corona-crisis-induced collapse in business conditions and confidence reported in the March quarter Suncorp-CCIQ Pulse Survey report. Business conditions and confidence are at their worst levels in the history of the Pulse Survey, which began in 2007, and are much worse than during the global financial crisis (e.g. see the 12-month outlook chart below). You can listen to my conversation with Jack here:

Here are some timestamps so you can find some of the highlights:

  • 1:30 – Jack gives an overview of the Pulse Survey findings for March quarter (NB the Pulse Survey period was from the 1st to the 15th of April; JobKeeper was announced 30 March)
  • 4:00 – discussion of the “severe financial hardship” being felt by many businesses
  • 10:00 – discussion of the huge adverse impacts of coronavirus on hospitality and tourism
  • 13:20 – discussion of regional conditions and confidence, with Jack noting Cairns businesses were “very vocal” about how badly they’ve been impacted
  • 14:45 – beginning of discussion about policy issues, and why tax policy changes (e.g. long-term payroll tax cut and a switch from stamp duty to land tax as NSW and Victoria are investigating) may be desirable
  • 22:00 – discussion about how much depends on how soon our borders re-open, both to other states and the rest of the world, with reference to the importance of domestic tourism in reviving some of our regional economies

Pulse_outlook_Mar20

12-month outlook for the Australian and Queensland economies, Suncorp-CCIQ Pulse Survey estimates, courtesy of CCIQ

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