Long COVID continues to impose a significant economic burden on Australia and New Zealand, with estimates indicating a loss of approximately AU$9.6 billion (US$6.4 billion) in Australia alone due to reduced worker productivity. This accounts for about 0.5% of Australia's GDP, reflecting the widespread impact of long COVID on the workforce. In New Zealand, the economic implications are similarly severe, translating to around NZ$2 billion annually, as the condition affects an estimated 6-7% of adults globally [86f3ec81].
As of September 2022, around 1.3 million Australians were living with long COVID, including approximately 55,000 children aged four and under. The Medical Journal of Australia published a study revealing that about 100 million hours of labor were lost due to ongoing COVID symptoms, with workers aged 30 to 49 accounting for over 50% of the lost productivity [ca1579b4].
Professor Quentin Grafton has called for urgent government and workplace interventions to mitigate the economic impact of long COVID, emphasizing that the cost of implementing better frameworks is significantly lower than the current losses. Predictions suggest that by December 2024, between 173,000 to 873,000 Australians may still be affected by long COVID, indicating a potential underestimation of its economic impact [ca1579b4].
In New Zealand, the GDP was estimated at NZ$410 billion for March 2024, and the government is urged to take immediate action to improve vaccination rates and reduce community spread. Strengthening occupational support and conducting local economic analyses are also recommended to better understand and address the economic ramifications of long COVID [86f3ec81].
The global economy has shown resilience amidst the challenges posed by the COVID-19 pandemic, the war in Ukraine, and rising interest rates. Despite the deep scars left by the pandemic, the world economy has proven unexpectedly sturdy, with a rising chance of a soft landing to avoid recession while bringing down inflationary pressure. However, global economic growth is expected to remain below the average of the past two decades, with the world having lost $3.7 trillion in economic output since 2020. The United States is the only major economy to have returned to its pre-pandemic path, while the rest of the world is still below trend [81f0f559].
The IMF chief emphasizes that fighting inflation is the top priority, urging central banks to keep interest rates higher for longer to prevent a premature easing of policy. This resilience is particularly important for the poorest countries, which are experiencing the greatest impact due to limited economic buffers [81f0f559].
Labour force participation in the euro area is at an all-time high, driven by demographic changes over the last two decades. The pandemic initially led to a drop in participation rates, but it quickly recovered thanks to policy support measures. The increase in labour force participation is particularly notable among women, older workers, highly educated individuals, and immigrants [a40ec75f].
The UK is facing a £16 billion ($20.1 billion) annual bill to cover the rising cost of disability benefits over the next five years, as the country grapples with the longest sustained rise in health-related inactivity since the 1990s. The number of working-age Britons who are neither in work nor looking for a job due to ill health has increased by 600,000 since the pandemic [0e64e256].
In conclusion, the economic impact of long COVID is profound and multifaceted, necessitating urgent action from governments in both Australia and New Zealand to implement preventive measures and support for affected individuals. The ongoing health crisis underscores the need for a coordinated response to mitigate the long-term economic consequences of this condition [86f3ec81].