3. Kiwis report a pay cut
In an international survey, 20% of New Zealanders reported a pay cut since the COVID-19 crisis began, but relatively fewer people are reporting they’ve been laid off. This is because the Government’s wage subsidy is helping keep many businesses afloat. At this stage, we expect the unemployment rate will increase to around 11%. An extension to the government’s wage subsidy scheme is likely, and if this happens, we expect it to target our most vulnerable industries as opposed to continuing the across-the-board approach.
4. Agribusiness more concerned with drought than COVID-19
New Zealand’s agriculture sector has continued to export products during lockdown and is expected to perform relatively well through the crisis. People have to eat after all. However, our severe summer drought has made life tough for many farmers.
5. Globally, people will prioritise domestic travel
Global research suggests the first activity people want to do after lockdown is travel. However, surveys suggest domestic travel will be prioritised over international. This may result in less trans-Tasman travel, even if our borders are opened to Australia. People will be in saving mode, and international holidays are a ‘nice to have’.