Hundreds of thousands of workers around the country will be able to return to work from next Tuesday, with experts predicting it will throw the economy a much-needed lifeline.
The past month has had a devastating impact on the economy, with the country seeing thousands of job losses at some of our biggest companies.
The retail, tourism and hospitality sectors were the hardest hit by the virus.
Fifty-one people lost their jobs today at Dunedin Railways, the provider of a popular tourist activity.
Infometrics economist Brad Olsen said 1.5 million New Zealanders are on the wage subsidy, and a further 22,000 people have gone on Jobseeker Support over the past few weeks.
"It will make sure those numbers don't rise as severely," Mr Olsen said.
The economic forecasts paint a gloomy picture, with unemployment expected to reach double digits and house prices to fall sharply.
Billions of dollars have since been wiped off the economy.
However, the predictions would have been far worse had the country remained at Alert Level 4 longer.
“We've tested being in lockdown for a much longer period and we can stand that financially, but it certainly takes the shine off the year and it's not good for businesses but equally, as I said before, I don't think it's good for staff being locked away,” Brosnan Construction’s Phil Brosnan said.
The lockdown - which has been extended until 11.59pm Monday, April 27 - is two working days longer than many had hoped.
Prime Minister Jacinda Ardern said the Government "had to weigh up against the additional certainty that it gives, that we're less likely to have to return to Level 4 down the track.
"We get the greatest gains at the lowest cost,” Ms Ardern said.
“Every day is an issue for businesses and we know there are some who are already in a very tough place. This now gives them a bit more certainty,” Mr Olsen added.
It’s expected to be a long fight out of the recession, however.
ANZ economist Sharon Zollner said it was important that the country sees progress, even if it's minimal.
“We do need to see continual forward progress, even if it's slow, just to help give us all a bit of encouragement because this is a very difficult situation, particularly for small businesses,” Ms Zollner said.
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