TODAY |

Economy taking $400m hit a week at current alert levels

The immediate impact of the country's new alert levels on the economy is becoming clear.

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That accounts for eight per cent of weekly GDP, that's according to estimates by ASB Bank. Source: 1 NEWS

The cost of Auckland at Alert Level 3 and the rest of the country at Level 2 will be more than $400 million a week, accounting for eight per cent of weekly GDP, according to estimates by ASB.

Businesses around the country are being reminded that many can operate if they're essential, contactless, observe physical distancing and promote contact tracing.

One of the new rules, which businesses have a week to implement, is that businesses must also display a QR code to the Government's Covid Tracer app, but the confusion means some businesses have closed for three days.

Kids Korowai's Hiria Faofua told 1 NEWS she was "in limbo" all day yesterday.

"I was like how do I keep my family safe, but still keep providing for my family?"

Brett O'Riley, from the Employers and Manufacturers Association, encouraged businesses to follow the rules and open up.

"I think it's really important that we don't scare people so that inadvertently businesses don't open, staff don't go to work and it has a greater impact on the economy than needs to be the case."

However, the Government is considering options for what it would do if restrictions are extended in one way or another.

A regional-targeted economic package just for Auckland was originally discussed, but now it seems too difficult to implement.

Instead, an extension of other policies on the table could get the go-ahead.

There's about $14 billion in the Covid relief fund still to spend.