The International Monetary Fund has praised New Zealand's economic performance in response to Covid-19, but warns it is vulnerable to a housing downturn. On the fiscal side, I would particularly say the wage subsidy programme was very helpful during the initial lockdown and has helped [avoid] a much, much worse labour market outcome," IMF Australia New Zealand division chief Harald Finger said. It made sure that 60 per cent of wage earners in New Zealand could benefit from it and that actually is, from what we can see, the highest coverage in the world."
However, the IMF report said the recovery had been uneven, with job losses felt most among low-skilled workers, young people, women and people from ethnic communities.
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