Covid lockdowns will rip $7.4billion from the NSW economy

Australia
By William

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How the economy will take a $7.4billion battering as yet another consequence of Australia’s lockdown obsession hits

  • High rates of post-lockdown anxiety and depression could drain billions
  • The economy will take a hit to the tune of $7.4billion as a result of rising illnesses
  • Mental health was the focus of a new post-pandemic economic report
  • Those struggling with their mental health can reach Lifeline on 13 11 14 

By Max Aldred For Daily Mail Australia and Phoebe Loomes For Australian Associated Press

Published: 05:39 BST, 25 August 2022 | Updated: 05:40 BST, 25 August 2022

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Rising rates of anxiety and depression caused by COVID-19 lockdowns could sap up to $7.4billion from the NSW economy by 2025, a new report suggests.

The cost comes as an estimated 171,615 more people in NSW reported mental health issues consistent with depression and anxiety in 2021 that were linked to lockdowns.

In 2021, NSW entered a lockdown amid the spread of the Delta variant, with restrictions continuing for nearly four months in Sydney.

The findings are detailed in the first chapter of Aftershock: Addressing the Economic and Social Costs of the Pandemic and Natural Disasters, a research series commissioned by the NSW Council of Social Service (NCOSS) and published on Thursday.

The report also found evidence of growing emotional distress in recent years, including a 46 per cent increase in 12- to 17-year-old girls arriving at emergency departments for self-harm or suicidal thoughts between 2018 and 2021.

There was also a 9.3 per cent increase in prescriptions for depression medication during the same period, which is more than double the rate of other medicines.

NSW's lockdown love affair will cost Australians billions and took a heavy toll on mental health (pictured, a police officer talking to beachgoers in Bondi last September)

NSW’s lockdown love affair will cost Australians billions and took a heavy toll on mental health (pictured, a police officer talking to beachgoers in Bondi last September)

NCOSS chief executive Joanna Quilty (pictured) said the estimated cost of the nation's mental health crisis each year was billions of dollars

NCOSS chief executive Joanna Quilty (pictured) said the estimated cost of the nation's mental health crisis each year was billions of dollars

NCOSS chief executive Joanna Quilty (pictured) said the estimated cost of the nation’s mental health crisis each year was billions of dollars

NCOSS chief executive Joanna Quilty said the estimated direct cost to the Australian economy of poor mental health had been about $40 billion to $70 billion a year before COVID-19.

‘We know that people’s mental health worsened as a result of extended lockdowns across our state and that it was women with young children who were most affected,’ Ms Quilty said.

‘On top of that, natural disasters have since added to the picture of rising psychological distress across communities in NSW.’

'We know that people's mental health worsened as a result of extended lockdowns across our state and that it was women with young children who were most affected,' Ms Quilty said (pictured, police officers patrol Bondi Beach in September 2021 to ensure compliance with lockdown rules)

'We know that people's mental health worsened as a result of extended lockdowns across our state and that it was women with young children who were most affected,' Ms Quilty said (pictured, police officers patrol Bondi Beach in September 2021 to ensure compliance with lockdown rules)

‘We know that people’s mental health worsened as a result of extended lockdowns across our state and that it was women with young children who were most affected,’ Ms Quilty said (pictured, police officers patrol Bondi Beach in September 2021 to ensure compliance with lockdown rules)

She said the cost to the NSW economy of $7.4 billion over five years was a low estimate.

‘This is conservative, with the modelling looking only at the impacts of COVID lockdowns on NSW’s working population,’ Ms Quilty said.

‘It doesn’t take into account natural disasters or mental health impacts for the whole community.’

Mental Health Co-ordinating Council CEO Carmel Tebbutt said the research showed the psychological effects of recent disasters had hit children, women and dependent elderly people particularly hard.

The first chapter of the Aftershock: Addressing the Economic and Social Costs of the Pandemic and Natural Disasters research series examined the cost of the pandemic's affects on mental health

The first chapter of the Aftershock: Addressing the Economic and Social Costs of the Pandemic and Natural Disasters research series examined the cost of the pandemic's affects on mental health

The first chapter of the Aftershock: Addressing the Economic and Social Costs of the Pandemic and Natural Disasters research series examined the cost of the pandemic’s affects on mental health

‘Community mental health services are vital in responding to disasters as they reduce the burden of mental illness by supporting recovery and minimising the severity and long-term risks,’ she said.

Ms Tebbutt welcomed the NSW government’s June budget commitment of $2.9 billion to mental health services over 2022/23, but said the state continued to lag behind others on residential and community mental health services.

It comes after the latest national figures show 56 COVID-19-related deaths were reported on Wednesday, along with 15,732 new cases, 3199 people in hospital, with 93 in intensive care units.

For those in need of help: Lifeline 13 11 14, beyondblue 1300 22 4636, Kids Helpline 1800 55 1800 (for people aged 5 to 25).

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