Coronavirus: Economy 'in the eye of the storm' – Finance Minister Grant Robertson says

Finance Minister Grant Robertson. Photo / Mark Mitchell

Finance Minister Grant Robertson says New Zealand is "in the eye of the storm" when it comes to the economic impacts of the Covid-19 pandemic.

He has also revealed that he has told the Minister of Health that there is "no question" when it comes to resources and the Government's spending on containing the disease's spread.

"We will do what it takes to keep our people healthy and safe."

Speaking to the Wellington Chamber of Commerce this morning, Robertson touched on new elements of the Government plan to limit the economic fall out of the disease.

His speech comes as markets around the world continue to be hit hard and some economists predict a recession.

Just this morning, ANZ said a recession was "looking highly probable".

This morning (NZ time) the World Health Organisation (WHO) said Covid-19 was a pandemic.

Robertson acknowledged this in the speech before laying out new details on the Government's plan to mitigate the economic damage.

He detailed some elements of the planned "macroeconomic package" which would only be deployed if the situation deteriorates further.

"Such measures could include tax and welfare changes that support incomes and consumption, and help businesses stay afloat."

Speaking to media after the speech, he suggested another way the Government could help bolster the economy was to employ more people to plant trees as part of its one billion trees project.

Robertson also revealed he had asked officials to begin work on a "recovery phase" economic package.

"The economy will recover from this, so we need to ensure we are well-placed to bounce back strongly when we do."

He said the package will support the entire economy as "we come out the other side".

This includes an "NZ Inc. approach to re-engaging with China" as well as measures to help diversify New Zealand's export markets.

"While we are in the eye of the storm it is vital we push on with addressing the core challenges and opportunities for our future prosperity."

Meanwhile, he highlighted the Government's willingness to spend as much money as required to limit the spread.

"I have made clear to the Minister of Health that there is no question here about resources. We will do what it takes to keep our people healthy and safe."

But he said the economic impact of the disease will impact New Zealand "for all 2020".

He compared it to the Global Financial Crisis and the Christchurch Earthquakes of 2011.

But he said this situation was "very different" to any other challenge New Zealand has faced in the past decade.

Robertson again went into detail about the strength of the Government's books.

He said low Government debt and projected surpluses would help its economic response.

Meanwhile, Robertson revealed that this morning he made it clear to representatives in the hospitality sector the Government had no plans to scrap the minimum wage increase next month.