Melbourne counts economic cost of coronavirus lockdown, offering harsh lesson to other cities
- The lockdown cost US$71 million a day and resulted in a daily average of 1,200 jobs being lost across the state in August and September
- Business leaders say it may take years for Melbourne – which was last year ranked as the world’s second-most liveable city – to recover
The city of 5 million people on Wednesday emerged from one of the world’s strictest and longest lockdowns that shuttered businesses and confined residents to their homes for more than three months.
While infections have dropped from a daily peak of about 700 in early August to just two new cases on Wednesday, the economic and social impact of Melbourne’s second lockdown since the crisis began has been enormous. Australia’s government estimates 1,200 jobs have been lost on average a day across Victoria state, while demand for mental health services has surged by more than 30 per cent.
Despite key factors working in Melbourne’s favour, including closed borders, an infection count that was tiny by international standards, and a state government with strong public backing, it still took twice as long as anticipated to crush the curve.
It’s a bleak reality confronting political leaders, particularly in Europe, who have already experienced the damage wrought by full-blown lockdowns and are now weighing options to fight a resurgence of the pandemic. German Chancellor Angela Merkel, for example, is pushing for tougher curbs on movement and contact, including closing bars, restaurants and leisure facilities until the end of November, according to a draft federal government briefing paper.
But security failures at quarantine hotels for returning overseas travellers, poor communication of critical information to migrant communities and inadequate contact tracing allowed the virus to roar back in Victoria.