(Bloomberg) -- Australia has suffered its worst day of coronavirus infections, with Victoria state recording 484 new cases as a second wave threatens to derail the nation’s economic recovery.
After initial success in containing the virus, Australia is battling a spike in Victoria, which has forced around 5 million people in Melbourne back into a six-week lockdown. The shutdown of the nation’s second-biggest city, which contributes about one-quarter of gross domestic product, could prolong the nation’s first recession in almost three decades.
State Premier Daniel Andrews said two more people had died, taking the state’s death toll to 44, and warned the lockdown may be extended unless people complied with restrictions. Neighboring New South Wales state recorded 16 new cases in the past 24 hours. The previous national record was 469 cases, set on March 28.
Melbourne has seen a surge in community transmission, blamed on missteps in mandatory quarantine for returned overseas travelers, and insufficient contact tracing. Police have handed out hundreds of fines to people flouting the lockdown, under which they are supposed to stay home except for essential work, education, care or grocery shopping.
Brett Sutton, Victoria’s chief health officer, warned the state faced challenging times ahead and cases could rise further to 500 to 600 per day.
Police dished out A$26,000 ($18,600) in fines earlier this month after a late-night order of more than 20 Kentucky Fried Chicken meals raised the suspicions of emergency workers and led to the discovery of a house party.
Andrews has seen a 10-point drop in his approval ratings amid the spike in infections, according to a Newspoll published by the Australian newspaper this week.
The national government is trying to buttress the economy as the Victoria outbreak prolongs state border closures and drags on activity. Prime Minister Scott Morrison announced Tuesday that the government will pump a further A$20 billion into supporting jobs.
Treasurer Josh Frydenberg will deliver an economic and fiscal update Thursday, where he is expected to unveil the biggest budget blowout since World War II.
(Adds death toll in third paragraph.)
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