The floods and severe weather in Auckland will lower New Zealand's economic growth and worsen inflation.
Costs of replacing infrastructure, commercial equipment and inventory are expected to cost the region hundreds of millions. Several businesses have closed their doors until further notice.
Kiwibank forecasted that repair and clean-up of impacted property and infrastructure to take several months, due to acute labour shortages in construction and related industries.
Similarly, Infometrics principal economist Brad Olsen stated that the large amount of furniture, carpet, fittings and vehicles needing replacement would add further pressure on an already tight supply.
Although the disaster is expected to have a significant macroeconomic impact, finance minister Grant Robertson noted that it is too early to estimate exact numbers or judge the overall impact of the flooding.
However, BNZ researcher Stephen Toplis asserted that the flooding could have longer-term consequences for the economy and change the perceptions of businesses on what infrastructure is needed moving forward.
