Treasurer Josh Frydenberg has warned the economy faces challenging times ahead with coronavirus lockdowns in the country’s two major states putting jobs and businesses at risk. Economists are predicting the economy to contract by as much as four per cent in the September quarter as a result of the lockdowns in NSW and Victoria. Victoria has flagged that its sixth lockdown will extend beyond Thursday, a further negative for the outlook. The June quarter national accounts are released on Wednesday, which will show how the economy was faring heading into this expected downturn. There are concerns the economy may already be in a technical recession should the June quarter result be a negative and given expectations for the September quarter. Two consecutive quarters of contraction constitute a technical recession. Asked on the Nine Network whether Australia is heading into a recession, Frydenberg said the median market expectation is for a …
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