As hundreds of thousands of businesses open up under Alert Level 3 restrictions today, the chief executive of BNZ says it will take many years for economic recovery to take place.
Angela Mentis says the bank is at present having “honest conversations” around businesses that may have been struggling pre-Covid-19 and how business can be re-shaped going forward.
She says that while every business is different - BNZ has been “really fast-paced” and is looking at what businesses can do to in terms of cashflow, online tools and how to re-think their business plans for the future.
“I think it’s case-by-case, as I said, industry-by-industry, sector-by-sector and there will be some that will be profoundly impacted as a result of Covid-19."
Ms Mentis told 1 NEWS BNZ expects a contraction in the economy of about nine per cent as a result of unemployment, “edging towards 10 per cent”.
“We think there will be a quicker recovery into 2021 but it will take many years to get to the pre-Covid position for many businesses.
“But with 80 per cent coming back today, we do see significant lift up in the ability of businesses to be trading and customers to be back at work.”
Yesterday, Prime Minister Jacinda Ardern acknowledged she understood people wanted to return to their normal lives as soon as possible.
After two weeks at Level 3, Cabinet will meet to make a decision about the nation's next move on May 11.
"I am optimistic that we can continue on a path of success," Ms Ardern said.
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