The Covid-19 lockdown was the right decision to save lives, but the economic cost will be severe. Economists at Westpac Institutional Bank set out their forecast for the economy of New Zealand.
“We forecast that GDP will drop 15% over the March and June quarters, but will rise 10% in September.”
“We expect that the unemployment rate will reach 9% and house prices will fall 7%.”
“We forecast that the Government debt to GDP ratio will rise from 18.5% now to 40% by 2022.”