Treasury warns coronavirus could send economy into negative territory

Treasury warns coronavirus could send economy into negative territory

Treasury will today reveal the coronavirus will cut growth by as much as 0.5 per cent which is likely to put the economy in negative territory for the first quarter.

Head of Treasury Steven Kennedy will give an estimate of the economic impact of the virus on the economy in the Senate on Thursday morning.

The Reserve Bank warned the drop in international student arrivals and the impact of the virus on the education sector would contribute to the decline.

The forecast comes after an unexpected lift in GDP for the December quarter.

Image: News Corp Australia

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