Thursday, 18th February, 2021
Sunday dinner got rudely interrupted by the unwelcome news that NZ is heading into some repeat of last August’s Auckland L3 and rest-of-NZ L2 lockdown. The UK COVID variant has made it out into the community, with the source of infection as yet unknown. So, economically speaking, what does this mean? The key determining factor is how long the lockdown goes on for, and for that we will have to wait and see. If it is merely a matter of days, the economic impact will be minimal. Spending that would have happened (particularly in the services sectors) over this Monday – Wednesday period will likely be caught up on in following days or weeks. If restrictions continue over the weekend, the potential for foregone revenue in hospitality, for example, starts to step up.