How Lockdown Will Affect The NSW Economy

New South Wales went into lockdown on Saturday, along with other capital cities and it is once again going to take a toll on the economy, and small business owners. 

The two-week lockdown, which includes Greater Sydney, the Blue Mountains, Wollongong, and the Central Coast, is expected to cost $143 million a day and will clear out $2 billion from the GDP, according to the Australian Financial Review.

NSW Premier, Gladys Berejiklian assured business owners whose businesses have been impacted that support packages will be provided.

Though the current lockdown will reportedly cost the economy billions, Shane Oliver, capital chief economist of AMP believes putting an early lockdown in place would be less damaging than one put in place later, when the outbreak gets out of hand. 

The federal government has stated that it will also offer income support packages, available by July 1. 

Data shows that during Victoria’s snap lockdown, one in 10 accommodation and hospitality workers lost their jobs, a similar outcome can be expected for NSW with 26,000 people losing work. The government has also put the JobKeeper initiative on hold, further putting business owners under pressure which too may result in them letting go of their employees.

The areas under lockdown constitute 6.6 million people, who contribute towards 25% of Australia’s GDP.

NSW has reported 131 new covid cases this past week. 

If you’re experiencing difficulty during lockdown, The Alternative Board can help you step back and strategise to make it through, and even prosper during lockdown.

The government is set to roll out more information on its support packages in the coming days.

Read: How to see during times of uncertainty