What are these people basing this on? What negative factors? The whole Financial sector is collapsing worldwide and there is just no stopping it.
The New Zealand economy is being hit by a salvo of negative factors and is in recession , the New Zealand Institute of Economic Research said today.
In its quarterly predictions report the NZIER said gross domestic product was likely to decline for three consecutive quarters. A decline in growth for two consecutive quarters is defined as a recession.
In the March 2008 quarter GDP declined by 0.3 per cent.
The NZIER cited its Quarterly Survey of Business Opinion as evidence that the economy would decline in both the June and September quarters.
But it went on to say “we believe the bottom of the cycle has been reached”.
The current recession was unusual in that it was spread across the consumption, investment and external sectors of the economy.