Billions more needed from govt to stop rising unemployment

Unemployment could rise higher than 25 percent because of Covid-19, in an NZ Treasury worst-case scenario.

But it could be kept closer to 10 percent if the government spends at least $20 billion on top of what it has already pumped into support packages and wage subsidies.

Treasury has modelled seven scenarios, that could also see 25 percent shaved off GDP, depending on the alert level the country is in and for how long.

What is the potential economic cost of this pandemic?

Treasury's chief economic advisor Tim Ng talks to Lisa Owen.