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Reuters News has reported on statements made by the Reserve Bank of New Zealand in a paper on economic impacts of COVID-19 containment measures.

Key notes

  • RBNZ sees impact ranges from estimated 4% reduction in GDP under alert level 1 up to 37% of GDP under level 4.
  • RBNZ sees GDP around 37 % lower during period of alert level 4 than would have been without any restrictions.
  • RBNZ sees GDP around 19 % lower during period of alert level 3 than would have been without any restrictions.
  • RBNZ sees impact not uniform across economy, with some sectors more heavily effected than others such as tourism.
  • During 4-1/2 week period at alert level 3, equates to fall of about nz$5 bln in production relative to baseline, reducing annual GDP by 1.7%