Investors are bracing for more big losses on the Australian share market after heavy falls here and abroad.
The SPI200 futures contract was down 284 points, or 4.97 per cent, to 5432 at 7am today.
Stocks on Wall Street overnight plummeted so fast they triggered the first automatic halt in trading in more than two decades.
Shane Oliver, the chief economist at AMP, said a recession was a "given" but the pain might be short-lived.
"You probably best call this a disruption as opposed to a recession," Mr Oliver told Today.
"It is not your typical recession. We should bounce back fairly quickly but it will cause pain."
Mr Oliver said proposed government assistance would help businesses survive during an uncertain period.
"Government is talking about a stimulus package, that will also help but the reality is we have to get through this period of short-term disruption and pain," he said.
"That's where it's going to be fairly difficult.
"What (a stimulus package) does is keep those businesses going that otherwise might have gone bust, keeps workers who might have lost their wages because of that unemployment getting their wages, and ultimately helps the recovery.
"That's the key here. A virus will run its course, then it will come to an end.
"We have to get back out there and spend and this is about bolstering that later in the year."
Yesterday, the Australian stock market suffered its worst single day loss in nearly a dozen years.
Prime Minister Scott Morrison will address business leaders in Sydney today about the stimulus package to help the economy.
Mr Morrison is expected to reassure the public that the stimulus, worth about $10 billion, will not be funded by cuts to essential services such as schools, hospitals and the National Disability Insurance Scheme.
The package is expected to be issued later this week.
The Aussie dollar was buying 65.94 US cents at 7am today, up from 65.46 US cents at the market close yesterday.
"typical" - Google News
March 10, 2020 at 04:25AM
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'Not your typical recession': Aussie investors braced for more heavy losses - 9News
"typical" - Google News
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