Source: New Zealand Institute of Economic Research
01 March 2022
The acceleration in the number of COVID-19 cases across New Zealand will weigh on the economic recovery over the coming year. Despite the relaxation of restrictions for the fully vaccinated under the move to the Traffic Light system in December, there are signs of other changes in behaviour as people restrict their movements for fear of infection or having to self-isolate. This raises uncertainty over the recovery in services activity in New Zealand. The potential for widespread worker shortages due to illness or self-isolation presents a further challenge to the New Zealand economy more broadly. Offshore, the invasion of Ukraine by Russia adds to the uncertainty over the global growth outlook. Read the media release here.
