Much of this was done remotely throughout the lockdown, sometimes into the night and weekends, demonstrating the importance of building strong relationships with market participants before the crisis. Next steps Of course, the implications of COVID-19 are not over, either globally or here in New Zealand.
Second, weaker economic growth translates into greater need for government expenditure on unemployment support and social welfare (see Figure 9). Third, if banks incur sufficiently large losses, the government may be forced to inject capital in the banking system, potentially leading to large increases in public debt. Ireland’s current fiscal problems largely result from the effect of the housing bubble on the public debt.