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A cost benefit analysis of 5 extra days at COVID-19 alert level 4

COVID-19 Pandemics Economic forecasting New Zealand

COVID-19 is both a health and an economic crisis for New Zealand. How it handles the health crisis affects the economy, and how it handles the economic crisis will affect New Zealander’s health in the future. Looking at health or economic costs in isolation risks presenting a skewed picture of the overall situation. This document together estimates of health and economic costs into one model.

Key finding

  1. The direct economic costs of the 5-day extension come from the restriction of economic activity. Treasury calculate a 15% loss of economic output at level 4 relative. Costing the country approximately $749 million.


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