The Federal Government’s stimulus package will not contribute to a revival of the retail sector, according to a recent forecast issued by consultancy Access Economics.
Its latest retail forecast has predicted minimal growth of the sector, by just 0.8 percent this financial year, dropping to 0.2 percent next financial year. A modest recovery will not be evident until 2011.
Despite $21 billion to go to consumers, Access director David Rumbens says the stimulus will merely help retailers tread water. “The backdrop is one where sales would otherwise be declining,” he remarked.
“The stimulus package will provide some support and may see retailers break even in terms of growth to hold their sales over the next 18 months as opposed to going backwards.”
Figures collected on the first stimulus package in December showed that recipients saved the money rather than spent it, according to Opposition leader Malcolm Turnbull.
The first funds from the second stimulus package will be released today, with payments to roll out throughout the next month.
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