SGS Economics and Planning lead economist Terry Rawnsley looked at the economic impact of COVID-19 and the summer bushfires in local government areas (LGAs) across Australia, and found Greater Shepparton would experience a decline in GDP during the 2019-20 financial year.
However, Mr Rawnsley said Greater Shepparton was predicted to do better than many other council areas in Victoria due to the continuation of the agricultural and manufacturing industries, compared with other council areas that relied on tourism or had been impacted by bushfires.
“Agriculture hasn’t been as impacted, and the impact on the industrial sector hasn’t been fully felt yet,” he said.
Mr Rawnsley said the Greater Shepparton region had experienced two recessions in recent memory – one last financial year related to the drought, and another in 2015-16 of about 4 per cent due to a decline in agricultural and food manufacturing related to the SPC restructuring.
Greater Shepparton City Council sustainable development director Geraldine Christou said the region was faring better than others through the pandemic.
“Such a strong industry base, combined with our agricultural footprint, supports our economy in a significant way and the flow-on effects are experienced throughout our municipality and surrounds.”
She said council was working towards economic recovery post-pandemic, especially for sectors greatly disadvantaged by the crisis, including tourism, accommodation, retail, beauty therapy, hospitality and event services.
“In relation to our economy moving forward, Council is of the view that this is no doubt a challenging time for business and industry and the community, and is grateful in regards to the current Federal Government and state government support directly assisting business and industry,” she said.
“Council is working towards supporting business and industry by introducing initiatives that are included in our Stage 1 Greater Shepparton Economic Response to COVID-19 Package.“
She said council’s partnerships with community organisations and groups through the Greater Shepparton Response would also help the municipality recover from the crisis.
Ms Christou added she was impressed with the amount of innovation shown in the community, particularly in the hardest hit sectors.
“Business and industry should be very proud of what has been achieved throughout the municipality during what is an unprecedented economic and social circumstance,” she said.
The SGS Economics and Planning report predicted Australia's GDP would see a 6.7 per cent fall, while some LGAs worst impacted by the pandemic and the bushfires would see their economy collapse by 10 to 15 per cent.
Moira Shire and Campaspe Shire are anticipated to experience a GDP contraction similar to Greater Shepparton's.