According to the latest ANZ banking survey, business confidence in New Zealand has experienced a sharp fall during April, with several indicators sliding to the lowest levels ever recorded amid rising fears about the economic impact of the coronavirus pandemic. The survey indicates that 73.1% of NZ businesses expect economic conditions to worsen over the year, while in the previous month, along 63.5% businesses had felt pessimistic about the economic outlook for 2020.

The survey also reveals that 54% of companies are planning to cut down their staff this year while 73% anticipate profits to decline. The sentiment surrounding profits has been the worst on record.

The high levels of uncertainty surrounding the extent of economic damage the pandemic can drive and how long its effects will last on the economy are the main drivers behind this rise in pessimism among businesses in the country. Even though the governement and the RBNZ have announced a slew of stimulus efforts, businesses remain under strain as they are unable to make plans towards recovery yet.

Across the world, the coronavirus pandemic rages on, with the number of cases climbing to 1.13 million and causing deaths of over 70,000 people. In New Zealand, the number of infections has increased to over 1,200 while only one life has been lost so far.