COVID-19 in New Zealand: consequences, policies, and regional responses

New Zealand is a geographically isolated trading nation of approximately five million people. It first adopted an ‘elimination’ strategy to the SARS Coronavirus-2 pandemic. While effective in reducing transmission, it has not been without risk, unintended consequences, and social and economic costs. New Zealand’s health and macroeconomic policies, spatial, structural and regional effects have been examined. Five key themes emerged: First, the benefits of geographic isolation, seasonal variance, and economic structure provided time to plan and respond; second, high trust in government and health advice; third, a strong fiscal response; fourth, bespoke regional planning; and fifth, tension between “building back better” and rebuilding the economy. We conclude that there have been unintended sectoral and structural economic effects due to heavy quantitative easing, but this has dampened negative effects overall. Structural distortions in the economy have increased, low productivity growth remains, and inequality has been exacerbated.