Already New Zealand is facing further challenges from the COVID-19 pandemic, with community transmission of Omicron and a move to Red for the entire country.
Wider issues remain on the radar too, including inflation, spending, and house prices, as Chief Forecaster Gareth Kiernan discusses in From the Beach 2022.
Principal Economist Brad Olsen has reviewed the information we have on Omicron and explores what the outbreak might mean in our new report. His media release outlines the findings.
Omicron has broken out into the community, and New Zealand finds itself at red in the COVID-19 Protection Framework, with concerns of up to 25,000 cases a day. The Omicron outbreak continues the incredible levels of uncertainty that have been a hallmark of life over the last two years. Our latest set of forecasts for the economy will be published on 4 February, and they are set to reflect both this uncertainty but also the stronger position the New Zealand economy has worked hard to achieve. From the Beach provides an overview of some of the key factors (apart from COVID-19 itself) that we think will define economic outcomes during 2022.
New analysis from leading economic consultancy Infometrics finds that the Omicron outbreak in COVID-19 will disrupt New Zealand’s economic recovery. Exploring Omicron’s potential economic impact on New Zealand identifies a range of key challenges New Zealand is expected to face during the Omicron outbreak, including limits on events and hospitality activity, high levels of workers off work, and difficulties finding some goods.
