Great Lockdown to rival Great Depression as global growth tanks, IMF warns

Australia will be swept up in the worst global downturn since the Great Depression with economic growth contracting sharply because of the coronavirus pandemic, the International Monetary Fund is warning. 

In its latest World Economic Outlook, the IMF predicts Australia's economy will shrink by 6.7 percent this year with unemployment surging to 7.6 percent and 8.9 percent in 2021. 

However, the IMF forecasts Australia will bounce back with 6.1 percent growth in 2021 if the pandemic is contained and restrictions ease, referring to a "swift and sizable" fiscal response. 

I speak with Ernst & Young chief economist Jo Masters who says Australia's economy might never be the same even in the best case scenario.