Economic Growth in NZ After COVID Essay Sample

Coronavirus is a viral disease that is spreading throughout the world as a deadly pandemic. Even the beautiful country of New Zealand is not spared from this pandemic. The Government of New Zealand has also introduced a strict lockdown since March 2020. This is to curb the further spread of this deadly virus.  Moreover, it is a measure to save more people from dying due to COVID.

This lockdown continued for months and is badly affecting the economic growth in New Zealand. During the lockdown, many business establishments are shut down, resulting in the loss of jobs. Some lucky ones working in essential business establishments have the option to work from home.

Now, let us see how New Zealand is preparing to improve its economic growth after COVID. It is also important to keep in your view that COVID is not a matter of the past, it is still present here and is affecting our lives.

Impact of COVID- 19 On the NZ Economy

The impact of COVID- 19 is so severe in the NZ economy that its Gross Domestic Product (GDP) is badly hit. The COVID impact in GDP is in such great loss that New Zealand households have limited their domestic spending by up to 12%. This is the largest GDP drop since 1987, and it is due to months of lockdown. The economic growth of New Zealand is higher than in Australia and Canada, at 7% and 11.5 % respectively. However, it is lower than the GDP loss in the United Kingdom, Singapore, and India.

The economic growth in New Zealand comes to a standstill when the NZ Prime Minister – Jacinda Arden has imposed a strict lockdown since 26 March 2020. During this lockdown, no one is allowed to leave their home. However, relaxation for going out is allowed for purchasing essential things like groceries, medicine, and emergency health check-up. This lockdown is for saving NZ peoples’ lives at any cost.

Worst Reduction in New Zealand’s GDP Growth

The GDP loss is biggest in the early times of the pandemic with 1.6 %. This has been breaking records for the last 29 years. The greatest impact is in Wellington and Auckland since it is regarded to be the hub of tourism and higher education.  This is because of the lockdown imposed by the pandemic, and students and tourists have kept themselves away from these places. The loss figure is stated to be since the early pandemic times. Moreover, more GDP losses are thereafter lockdown extension.

According to the statement given by the NZ political parties, this figure of economic loss is just for 3 months. But it will take more than a decade to come out of this impact.

Worst Affected Sectors of NZ Economy After COVID Impact

The lockdown imposed due to the COVID- 19 has affected businesses of essential sectors and non- essential sectors differently. The essential business-like food industry, agriculture, medicine & healthcare, and logistics has a significant growth during the COVID.

However, some industries are facing losses during COVID- 19. This includes –

1. Retail

Peoples were spending less on non- essential items like luxurious items, cars, jewelry, and other expensive brands. So, shopping malls and other big-brand houses have shut down their stores.

2. Tourism

There is a huge loss in tourism businesses like hotels, airlines, rail, and transports. Peoples are afraid to go out to entertainment destinations, multiplexes, and restaurants. Hence, these sectors are also facing huge losses.

3. Construction & Manufacturing

There is a decline in GDPs in areas of construction and manufacturing at 25.8 % & and 13% respectively. These industries have a high gathering of peoples at the same time. So, to curb the COVID spread, it went under a strict 3-month lockdown.

Therefore, after 3 months in September New Zealand has become normal. Here, peoples are visiting malls, eating out, etc. Many business establishments are also open. Though, these industries can continue their business online, taking full safety measures. As for now, these businesses are no longer producing new goods and are clearing their old stocks first.

However, in the tourism & travel industry, there is growth in domestic traveling. However, it is still struggling due to the COVID impact.

COVID Safety Guidelines Issued by the New Zealand Government for Various Business Sectors

There are various COVID safety guidelines to curb the spread of Coronavirus, as well as make the NZ GDP better. These imposed guidelines are-

• Permission for only online and contactless selling of non- essential goods.
• Manufacturing and construction businesses were back in normal, but it should maintain distance between workers.
• Hotels and dine- in are not open for now. However, you can opt for take-out or home- deliveries.
• New Zealand has closed its international borders. This has affected tourism and migration.
• Discouraging non – essential traveling.
• Ban of mass – gatherings at functions, public places, weddings, and malls.

Conclusion

As you have seen how COVID has made its impact on New Zealand’s economic growth and GDP.

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