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Wellington, December 18, 2020
The government’s decision to act quickly in response to the global Covid-19 pandemic has helped the economy recover faster than expected, Deputy Prime Minister and Finance Minister Grant Robertson has said.
GDP rose 14% in the September quarter following a revised 11% fall in the June quarter.
On an annual average basis GDP fell 2.2% in the year ended September 2020.
Investment, Wage Subsidy helpful
“The economic bounce back is a result of our decision to go hard and early during the Covid-19 pandemic. We supported more than 1.8 million workers through the Wage Subsidy Scheme and invested billions of dollars into infrastructure, training and creating jobs. While New Zealand’s economy contracted in 2020, it is expected to rebound strongly in 2021, in line with countries we compare ourselves to, like Australia and the United States, and outperforming the United Kingdom and Japan relative to these countries’ 2019 starting point,” he said.
Recovery to continue
Mr Robertson said that global economic activity is expected to continue to recover over the rest of the forecast period, although the pace of recovery is likely to be uneven as countries contend with renewed virus outbreaks and the resulting containment measures.
“The full economic effects of Covid-19 are still to be felt in New Zealand and across the world. The government will continue to work with businesses and workers to cushion the blow and support job retention and creation,” Mr Robertson said.
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