Bracing for another storm - Quarterly Predictions, December 2011

30 November 2011

Rapid global downturn threatens economic recovery

"New Zealand's fledgling recovery will be severely hampered by the rapidly worsening global economy" NZIER's Principal Economist Shamubeel Eaqub said today.

Slow global growth to impact on export sector

The fall-out from the European sovereign debt mess will depress export growth. It will weigh on exports and tourism, which had been a buffer. Investment will remain depressed because banks will find it harder to raise capital overseas. The uncertainty around the global outlook is also weighing heavy on business and consumer confidence and thus spending.

The details are in NZIER's latest Quarterly Predictions - a comprehensive and independent commentary on the New Zealand economy and forecasts covering the next five years. Details and insights are available exclusively to NZIER members.

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