New Zealand is at risk of falling into a deeper recession, according to the International Monetary Fund.
In its annual report card, the IMF said the Government needs to rein in spending or else the country faces prolonged high inflation lasting until 2025.
The IMF said the economy had slowed, but significant labour market restraints had put upward pressure on wages, and the large positive output gap had kept inflation high.
“Growth is expected to slow to around 1% year-on-year in 2023 and 2024, with the possibility of a technical recession, despite some short-term boost from higher spending to address the North Island weather events and funding to meet central government cost pressures,” the IMF said.
“Inflation is likely to decline gradually to the 1–3% target range only in 2025 given the pick-up in non-tradable inflation.”
Finance Minister Grant Robertson announced yesterday the Government forecasts $4 billion in savings, although the Opposition say it is too little, too late.
On top of this, the New Zealand dollar has dropped significantly, sliding below US$0.60, and the NZX is on track to finish the month down almost 5%.
1News
The problem is the unflushable grogans of the Labour Party. The dunny is blocked and is in desperate need of a proper flushing.
I’ve been saying for a while that this election is the most important in a generation, and this economic news proves that.
Grant Robertson won’t be around to witness his destruction of the economy. He’s placed his ever-expanding derriere on the party list for a quick exit post-election.
This is ever the way of the political vandals.
Cam Slater is a New Zealand-based blogger, best known for his role in Dirty Politics and publishing the Whale Oil Beef Hooked blog, which operated from 2005 until it closed in 2019. This article was first published HERE
2 comments:
I was thinking labour are merkins as well as grogans. Covers the bases.
NZ's once vibrant economy is on its knees - no surprise given the drunken sailor mismanagement of the Labour government.
Worse, Labour may have planned to leave the economy in this disastrous state.
Why?
1. to leave the challenging clean-up to the Right
2. to allow its Maori caucus to continue its real agenda of destroying NZ's democracy so as to return in full force when some economic progress is achieved to continue funding its policies.
NZers should not forget that one grave crisis is hiding another which is even more dangerous.
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