Economic activity staged a comeback in the last quarter of 2021, but is expected to be short lived.
The supply chains are expected be further stretched as Omicron spreads. (File image) Photo: RNZ / Nate McKinnon
Infometrics' December 2021 Quarterly Economic Monitor indicates economic activity rose an annual 2.8 percent in the quarter, as an easing of Delta restrictions unleashed demand in many local economies.
Economic activity has been strongest in the central North Island, with Hawke's Bay, Taranaki, and Manawatū all recording strong gains.
However, the spread of Omicron is expected to disrupt economic activity by restricting workforces, increasing absenteeism, and further stretching supply chains.