Countries with early lockdown top the list for GDP in 2020

Below is a useful graph looking at the 2020 GDP levels in most developed countries. New Zealand had a quick rebound with its elimination strategy, a supportive fiscal response and an expansionary monetary policy. The 2020 GDP figures considered the scale of lost activity from the COVID-19 lockdown as well as the rebound when restrictions were lifted. There seemed to be the trend that early lockdowns led to better GDP figures. Taiwan (2.98%) and China (2.3%) were the only countries to experience positive growth levels with New Zealand down 2.9% compared to 2019. Taiwan’s investment into public health infrastructure pre-COVID-19 enabled them to avoid a national lockdown. Early screening, effective methods for isolation/quarantine, digital technologies for identifying potential cases and mass mask use led to a much more controlled environment. China did experience a positive growth rate (2.3%) but this was well below 7% which they have been averaging since 2010.

However it is important to be aware that some countries were more impacted by COVID-19 than others, not only because of their hesitation to lockdown but also their reliance on certain sectors for GDP growth. Countries like Spain, who are very dependent on the tourist industry were hit hard by the pandemic. Many emerging and developing countries were already experiencing weaker growth before the pandemic struck.

Source: Westpac Bank

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