New Zealand’s economy is expected to remain sluggish for another two years, although the overall picture is rosier than many observers had feared, new figures indicate.
The Treasury predicted inflation would fall from 6% this year to 2.5% by 2025, and noted that a post-pandemic immigration influx had helped stabilize falling house prices earlier than expected.
“I think what these books represent is a turning of the corner for the New Zealand economy,” said Finance Minister Grant Robertson. “It has been an extremely tough time for businesses and households.”But that turnaround could come too late for the government, with opinion polls showing the opposition conservatives with a lead over the incumbent liberals as the election campaign heats up.
David Seymour, the leader of the opposition ACT Party, said the government had mismanaged the economy and his party would cut wasteful government spending.this year after COVID-19 recovery funds dried up and higher interest rates put the brakes on consumer spending. It’s possible the recession call could be reversed when revised figures for the March quarter are released.
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