Economist: NZ economy should never have slipped so far

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Wed, 09 Jul 2008 12:00a.m.

Kel Sanderson

Kel Sanderson

It has all but been confirmed that New Zealand is in a recession. But just how deep is the downturn and how long will it last?  
 
Economic activity fell 0.3 percent in the three months to March and Treasury suggests that the economy slipped backwards in the June quarter.

Many blame soaring petrol prices and a worldwide slowdown which are out of our control.

But economist Kel Sanderson from independent economic thinktank Berl says it should not have happened.

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Comments

09 Jul 2008 10:57a.m.

Trish, Auckland wrote:

The NZ economy has only slipped so far bacause of the interest rates being raised so regularly last year trying to slow the housing boom. Now it is getting so tight for all these people with huge mortgages that the purse strings are getting glued shut. Yes they had to slow the housing boom but not as viciously as they did. Look at the spin off effect that has now caused. Some banks are going to be owning alot of rental properties if the rates don't start to go back the other way again soon.

09 Jul 2008 09:40a.m.

Jim wrote:

Well the Govt Depts over-spending increasing to 47% of GDP since Helen's 1999 leftest Govt got in will have alot to do with it. These people (under Helen) have Govt Depts replicating themselves into new ones and filling them up with the Bureaucrat / Professional Manger BLOW-OUT