The restrictions imposed to limit the spread of the coronavirus will result in GDP falling at a double-digit rate in Australia and New Zealand in Q2. While activity will bounce back over the coming months, unemployment is set to surge and budget deficits will widen sharply. While the RBA will remain reluctant to ease policy further, we expect the RBNZ to slash rates into negative territory.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services