A rebound in the economy will be delayed until retail stores, cafes and restaurant reopen, economists said.

“If people have the confidence to send their kids back to school that will probably inject confidence into the retail sector,” he said.
Many retailers have shut due to a lack of customers.
Registered and licensed clubs, licensed premises within hotels and pubs, entertainment venues, cinemas, casinos, nightclubs, indoor sport venues including gyms, and places of worship were ordered to close by federal and state governments on March 23.
Restaurants and cafes were only be able to serve take away food and drinks.
University of Technology Sydney economics professor Warren Hogan said schools would make make little difference to the economy’s recovery.
“The big stuff – tourism, entertainment, clubs, pubs, restaurants – is probably not going to shift until we’re through this in around six momths,” he said.
“The problem for retail is not many people are shopping and the help they are getting from JobKeeper and rent relief makes it easier just not to open.”
Mr Hogan said said reopening school classrooms and lifting the two-people limit in social gatherings would help help people socially, but not not so much economically.
“Where governments have gone too far and are likely to pull back are on things that won’t make much differences to the economy,” he said.
The Reserve Bank of Australia forecasts the economy to shrink 10 per cent in the first half of this year, unemployment to hit 10 per cent and hours worked to drop a “staggering” 20 per cent.
Prime Minister Scott Morrison is pressuring states to reopen their classrooms in the coming weeks, as a precursor for a relaxation of business closures.
University of Canberra labour economist Phil Lewis the real damage to the economy had been in the services sector.
“If you want to boost economic output and employment you need to get people back into the massive employers of restaurants, cafes and accommodation,” he said.
“Going back to school won’t make any difference to them.”
“It could improve productivity for some workers.”
“It will mainly help the parents working in public service, clerical work, financial services.”
“Most of those jobs can be done at home.”
Citi economist Josh Williamson said in a report that the relaxation of social distancing requirements will be done gradually.
“Moreover, lower social distancing doesnt mean economic normalisation.
“We still forecast a large negative output shock and higher unemployment rate in 2020 and dont expect GDP to return to a level commensurate with the pre COVID-19 environment until Q4 2021.”