Australia, New Zealand Differ on COVID-19. Economic Fallout Could, Too.

Breaking News

[ad_1]

Australia and New Zealand are two of just six economically free countries in the world, according to The Heritage Foundation’s 2020 Index of Economic Freedom, but they have chosen dramatically different paths in dealing with the coronavirus health crisis.

Australia
has been far more mindful of the economic freedom of its people.

Both nations have done well in combating the COVID-19 pandemic that has been unleashed on the world. The number of cases and deaths from the virus per million of their populations are low compared with many countries, and the spread of the virus has been well-mitigated.

You Might Like

>>> When can America reopen? The National Coronavirus Recovery Commission, a project of The Heritage Foundation, is gathering America’s top thinkers together to figure that out. Learn more here.

During
the pandemic, Australia has been cautious not to infringe on economic freedom
when it doesn’t have to, allowing
schools
to decide to remain open, for example, and allowing many businesses
to operate, including mining, construction, and restaurants for takeout.

New
Zealand’s economic lockdown, by contrast, has been severe—stopping virtually
all businesses from operating until very recently, slightly loosening some
restrictions, but still not
allowing businesses to interact with customers
.

As a result, Australia and New Zealand face very different economic horizons ahead of them.

As was recently discussed in The Wall Street Journal:

Economists expect New Zealand’s economy to contract by more than 20% in the three months through June, compared with the quarter immediately prior, whereas Australia’s economy is expected to shrink some 13% over the same period.

“This reflects the fact that [New Zealand’s] lockdown is very strict. We also see quite a protracted recovery here,” said Elizabeth Kendall, an economist with Australia & New Zealand Banking Group Ltd. in New Zealand.

The banking group expects New Zealand’s economy to be 10.4% smaller at the end of 2020 than it was at the start of the calendar year. For Australia, that contraction is forecast at 4.7%.

New Zealand’s jobless rate may rise to 13.5% from 4% at the end of last year, according to government forecasts. Australia’s central bank has forecast the country’s unemployment rate will roughly double to 10% by June.

Australia’s
economic outlook is only about half as bad as New Zealand’s because key
industries there have remained operating during the COVID-19 pandemic, and
Australians have retained much of the economic freedom that New Zealand’s
government has, at least temporarily, taken away.

The
contrasting responses to the pandemic of Australia and New Zealand and their
impact on the overall economic health of the two countries have important
implications for America, particularly as we approach critical decisions about
reopening the U.S. economy.

As a recent Heritage Foundation report pointedly noted:

Policymakers need to consider these costs and the public health costs of severe economic reverses when determining the breadth and duration of public health-motivated shutdown orders or lesser restrictions.

[ad_2]

Read the Original Article Here

Articles You May Like

George Takei beclowns himself playing victim after illegal alien charged with brutally murdering nursing student Laken Riley
Female cyclist champion allegedly dismissed from women’s event for being Jewish and serving in the IDF 30 years ago
YIKES! New AllSides Study Shows Google News Pro-Leftist Bias Got WORSE
OF COURSE: ABC News Cheers Biden’s Latest Student Loan Bailout
“Blueprint” Reveals How Radicals are Infiltrating Government to Push Abortion, Transgender Agenda

Leave a Reply

Your email address will not be published. Required fields are marked *