New lockdown will cost economy almost $440 million a week

Author
Newstalk ZB,
Publish Date
Thu, 13 Aug 2020, 8:46PM
Queen Street during the previous lockdown. (Photo / NZ Herald)

New lockdown will cost economy almost $440 million a week

Author
Newstalk ZB,
Publish Date
Thu, 13 Aug 2020, 8:46PM

The new lockdown measures will cost the economy about $440 million per week - or 0.15 per cent of annual GDP, according to estimates by the ASB economics team.

"Our estimates suggest a modest impact on New Zealand's GDP, but this could easily grow," ASB senior economist Mark Smith told the NZ Herald.

ASB has modelled a range of costs based on different alert levels. They range from a weekly economic cost of $1.6 billion (or 0.54 per cent of GDP) if the whole country went back in to level 4 lockdown, to $166m (or 0.06 per cent of GDP) per week with the whole country at level 2.

The return to higher alert levels would have uneven impacts throughout the economy, Smith said. 

Listen to Liam Dann discuss this with Heather du Plessis-Allan above