RBNZ sees some sectors more heavily affected, such as tourism – Reuters

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%
• Economic impact on firms is highly uncertain under alert level 3.
• RBNZ paper's estimates & assumptions will inform reserve bank’s projections & scenarios as it prepares for may’s monetary policy statement.

More to come...