New Zealand’s response to the Covid-19 pandemic was praised around the world. However, the new Delta variant of the virus has thrown a spanner in the works.
New Zealand entering level 4 lockdowns and the volatility of the strain of virus has thrown some uncertainty into the economy. Although lockdown was quick to happen, the leader of the Labour Party Jacinda Ardern has faced criticism for not rapidly rolling out vaccines.
At the moment there isn’t any apparent pressure to change any approach to the economy as of yet.
“At this stage we don’t see it as a game-changer in the sense that our underlying economic analysis and views should be thrown out of the window and we should start again,” the Reserve Bank of New Zealand’s (RBNZ) Chief Economist Yuong Ha said.
New Zealand’s previous successful elimination of the Covid-19 pandemic had led to quick economic recovery and inflation. The experience means approaching this lockdown with more knowledge. The central bank has seen that spending recovers quickly post lockdown. One of the most important factors why the economy sees quick recovery is due to the various government support available.
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