economic hit

PHOTO: CHRISTEL YARDLEY/STUFFANZ estimated total GDP was 30 per cent to 40 per cent lower under level four lockdown conditions and 15 per cent to 20 per cent lower under alert level three.

An end to fees-free tertiary education and an increase in the pension age may be needed as New Zealand recovers from an economic hit that could push 240,000 more people into unemployment, ANZ says.

Its economic research team has released its latest Quarterly Economic Outlook, in which it said the economic slump New Zealand was experiencing was “truly enormous”.

‘Layoffs are coming’: Economist warns unemployment set to ‘surge’, house prices to fall

At alert level three, which New Zealand will shift to next week, about 10 per cent to 15 per cent of work would still not be able to  happen.

Productivity would be diminished among those who could operate, because of social distancing requirements.

“Overall, we estimate that total GDP is 30 per cent to 40 per cent lower under level four lockdown conditions and 15 per cent to 20 per cent lower under alert level three, adjusting for losses in productivity.

READ MORE VIA STUFF

TOP VIEWED STORIES & PAGES