Grant Robertson

As we head into a weekend where we can go along to Super Rugby games, watch our kids play sport, shop and travel around New Zealand, we truly are in a privileged position.

In most other countries there are still heavy restrictions, and economies nowhere near as open as ours.

This position is a result of the hard work and discipline of our whole country, and it presents an opportunity that we must not squander.

Because, while we are in a privileged position, there is no escaping the massive impact that Covid-19 is having, and will have, on New Zealand.

This week, the OECD released forecasts for the world economy which show how fast things are moving. They forecast the global economy to contract 6 per cent this year, twice as bad as predicted in March.

The OECD forecast

New Zealand’s GDP to drop 8.9 per cent in

2020, although our move to level 1 was not built in to that. This puts us ahead of the UK and EU (with 13 per cent and 9.1 per cent drops, respectively) and near Ireland at 8.7 per cent.

The forecast is better than the Treasury’s latest back in April for a 10.5 per cent drop – highlighting our improving domestic outlook amid a worsening global backdrop.

Most of the drop in GDP in New Zealand is expected to occur in April, May and June, covering the lockdown and reopening phase. The Treasury forecasts employment to start growing again in three months starting July 1 as activity rebounds. The OECD forecasts our recovery in 2021 will be stronger than others’.

This is why the next two phases are critical: recovery and rebuild. Our focus is on supporting people to stay in work and to help create new jobs. Our Budget in May is the driving force behind this plan.

Record investment in housing, infrastructure, apprenticeships and trades training will contribute to the creation of more than 300,000 jobs over the next few years.

Our focus is on supporting people to stay in work and to help create new jobs.