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The economic impacts resulting from the response to the COVID-19 pandemic continue to unfold, with economists predicting worse yet to come.
In an interview on Magic Talk Cameron Bagrie, of Bagrie Economics, predicted a five to ten per cent contraction in New Zealand’s economy and warned that the spending bounce following the lifting of the lockdown would be limited.

Already we have seen in Johnsonville a number of stores close, or announce impending closure.
The closure of Warehouse on Johnsonville Road has been announced and both Michael Hill Jeweller and Cracker have closed. Paper Plus will follow suit on 31 July.

On top of that Stride Property Group have advised that the much-anticipated mall redevelopment is now under review.
Residents of Johnsonville and the surrounding areas have been waiting, mostly patiently, since 2009 for Johnsonville Mall to be redeveloped. Clearly it will be some time yet before that comes about. Many of them might add “if at all.”

While the recession predicted to hit New Zealand may be a once in a generation economic shock, something of that scale and effect is not the only event which can disrupt investment plans, particularly plans as large as the reputed $150 million investment for the mall redevelopment.
Any manner of events can transpire at any point in time which result in delays to investment and such projects progressing.

It’s a salutary reminder that one should be careful not to make grandiose statements or promises if one cannot ultimately deliver on them.

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