Double dip recession may have happened – English
Finance minister sees hard times ahead.
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Budget 25
The economy may have suffered a double dip recession, Finance Minister Bill English said today.
He was speaking at Parliament's finance and expenditure committee, where he also announced that he would deliver the 2011 government budget on Thursday May 19.
Following questions from Labour finance spokesman David Cunliffe, Mr English said it was possible the fourth quarter of last year saw an economic contraction.
The previous quarter saw a small contraction in the economy and two quarters in a row is a recession – meaning New Zealand may have suffered a double dip.
Statistics NZ will release official December quarter GDP figures in late March.
Mr English told the committee that employment growth was likely to be slow as the economic rebalancing kept a lid on growth and the domestic sector, particularly retail and housing.
The main growth in economic activity would be in the tradeables sector because of high commodity prices but this sector does not employ as many people as the non-tradeable and domestic sector, he said.
Rob Hosking
Wed, 09 Feb 2011
Wed, 09 Feb 2011
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Double dip recession may have happened – English
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