The 2021 Auckland lockdown caused staggering damage, with all of New Zealand suffering together

(Image courtesy of PIXABAY)

According to the comprehensive report of the New Zealand Chinese Herald Network, how much damage was caused by the blockade caused by the Delta epidemic last year?

Statistics New Zealand will release economic data for the fourth quarter of last year on March 17, but according to earlier estimates by the Treasury Department, the lockdown could have cost nearly $8 billion.

The estimates are included in the Treasury Department's report on the outbreak released last November, which it believes remains the most accurate estimate of the cost of the lockdown to date.

The Treasury Department estimates that the lockdown cost the city of Auckland $4.5 billion between August 17 and November 5, equivalent to about 5.6% of the country's GDP over the same period. During this time, Auckland has been in a Level 4 and 3 lockdown.

The rest of the country has also been deeply affected by the outbreak in Auckland. The Auckland lockdown, along with local Level 2 alert restrictions, also costs outside Auckland nearly $3.4 billion, or 4.2% of GDP over the same period.

These figures represent the economic losses caused by the lockdown, not the costs that the lockdown brings to the government, that is, the fiscal costs. The latter is even more difficult to estimate, with the government paying more than $5 billion to provide financial support as of early November.

In July-October last year, government revenues were actually $2.9 billion higher than expected in May.

At the same time, government spending was also $4.9 billion higher than expected.

Government core net debt was $116.1 billion, down 8.5 billion from expectations and equivalent to 34.2% of GDP.

DAP leader David Seymour said the $8 billion lockdown cost was behind the woes and struggles of many Auckland businesses.

"To some extent, many people who have worked hard for decades to run a business and return to zero overnight, which can lead to serious psychological problems."

He predicted that high interest rates and high inflation would be the "after-effects" of the blockade.

Prime Minister Jacinda Ardern reiterated this week that the government would not use the lockdown against Omicron, and Seymour expressed support, saying the government needs to consider practical practices to slow down the spread of the virus and mitigate the consequences of the outbreak.

"Now everyone can get COVID-19, and the lockdown can't delay the day." (Original title: 2021 Auckland blockade caused staggering losses, the whole country suffered together)