So what’s next for New Zealand?
The impact of coronavirus on the economy, and New Zealanders’ money, remains uncertain.
A big test for workers will be whether they will still get paid if they have to self-isolate.
First Union secretary Tali Williams said that in a number of cases, generous employers were continuing to pay staff.
‘‘We’ve had a few situations already, where people have come back from China, and they’ve had to self-isolate. The most positive employers have said ‘we won’t take it from your sick leave, or annual leave allowance’. [But] we have had a couple who have said workers have got to use sick leave and annual leave.’’
Employers should explore whether employees who have to self-isolate can work from home, said Melanie McKay, public affairs manager at the Employers and Manufacturers Association.
‘‘If that is not an option, discussions in good faith should be undertaken about other possibilities including using sick leave, annual leave or the employer granting such leave in advance.’’
A worker and employer could strike a deal for some of the time in self-isolation to be paid and some unpaid.
Legally, it’s not entirely clear whether a worker who threatens to come to work instead of selfisolating would need to be paid, if the employer sends them home.
‘‘Generally, if a person is fit to work and the employer refuses to allow them to work, the employer must pay that person for that period,’’ the EMA said.
‘‘However, given the directive from the Ministry of Health around its expectations of selfisolation, an employer could arguably rely on this to prevent the employee from coming to work on health and safety grounds and not be liable to pay the employee for the time they are away from work.’’
SELF-ISOLATION
Self-isolation doesn’t mean locking yourself in a bedroom and never going out. But you should stay away from situations where you could infect other people, such as social gatherings, schools, work, childcare centres, faith-based gatherings, restaurants, bars, and public gatherings. It also means avoiding public transport.
Visitors should be avoided, but it is okay for friends and family to drop off food. Minimise contact and face-to-face contact closer than one metre to other people at home, and don’t share dishes or cups. Ask friends or family to bring you medicine rather than go out for it.
Online shopping is available, though Civil Defence surveys suggest as many as eight in 10 households already have food stockpiled at home in case of natural disaster.
Among the least prepared were lower-income people, Aucklanders, and Asians.
The Ministry of Health says people should be mindful of their mental health when self-isolating.
Those who feel they are not coping should talk with a health professional, or call or text 1737 to talk with a trained counsellor.
JOBS AND MONEY
Drought and coronavirus will deal a significant blow to the economy, said Westpac chief economist Dominick Stephens. But as yet, a recession is not expected.
‘‘We are now forecasting zero quarterly GDP growth for March quarter, and 2.2 per cent annual GDP growth for 2020,’’ he said.
Currently, official interest rate cuts to stimulate the economy were not expected until August, but Stephens said: ‘‘This is all predicated on the assumption that coronavirus is eventually contained.’’
KIWISAVER
The NZX 20 Index of New Zealand’s top 20 biggest listed companies dropped just over 4 per cent between Tuesday and market close on Friday.
Financial adviser Martin Hawes said he would not be panicked into selling investments.
‘‘Sometimes doing nothing is a choice. My choice at the moment is pretty much to do nothing.’’
Sam Stubbs, founder of the Simplicity KiwiSaver scheme, urged KiwiSavers not to shift to lower growth funds in a panic.
‘‘Your best friends in nervous times like these are patience and diversification. Most KiwiSaver funds have thousands of investments in many countries. So carry on contributing. Hindsight will show you’ve invested at sale prices.’’
HOUSE PRICES
Coronavirus could impact house prices, but property economist Kelvin Davidson from Core Logic said that as yet there was no sign of it in housing data.
‘‘Give it a month, and maybe we will see it,’’ he said. ‘‘There’s a bit of a lag.’’
Some markets might be more exposed than others, such as those more dependent on tourism, or foreign buyers, like Rotorua and Queenstown.
YOUR DEBT, YOUR SAVING
‘‘They say the best time to plant a tree is 20 years ago, and the second-best time to plant a tree is today,’’ said Hannah McQueen, founder of the EnableMe financial coaching business.
Economic disruption caused by coronavirus provided a moment for people to reflect on their finances, just as happened during the Global Financial Crisis of a decade ago.
Debt reduction and saving were the two things people should look at to build financial resilience.
That included creating a financial emergency plan, working out how to cope in the event of income disruption.