Second wave deadly to economy
A second wave of covid-19 would be a greater shock to the economy, says the OECD. The latest OECD Outlook says if there are no further outbreaks, NZ’s economy will likely reduce by 9% this year, recovering to 2019 levels by end of 2021. But a second wave of infections - the double-hit scenario - would see GDP reduce by 10% and a recovery period beyond 2021. NZ’s fiscal and monetary policy should remain expansionary to support recovery, especially in a double-hit scenario, the OECD says.
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