Kerre Woodham: Surely we've reached the bottom of the economic cycle

The news came in around quarter to 11 yesterday, and it was unwelcome confirmation of what many people had been experiencing, had been feeling. The economy had contracted, and worse, it had shrunk 0.9%, far worse than economists had been predicting.

Economists at the Reserve Bank had forecast the economy would shrink just 0.3% during the June quarter. Retail banks said, "Oh, I don't think so. I think it'll be closer to 0.5." In fact, the figures released by Stats NZ yesterday showed GDP fell almost a full percentage point in the three months ended June, with declines in most industries.