Aug 5, 2008

Treasury Says We Are In Recession

This from NZPA and the Herald

The Government's key economic agency believes the economy has dipped into recession.
Official GDP figures for the June quarter won't be out until next month, but in its monthly overview of July economic indicators, the Treasury says it believes the economy has contracted for the second successive quarter.
Two quarters of GDP contraction are considered a technical recession.
Treasury's view of last month's indicators add to a growing body of opinion the economy is in recession and it says things might not improve until towards the end of the year.
"Growth is expected to pick up in the December 2008 quarter owing to the combined effects of tax cuts on 1 October 2008, recovery from the drought, high export prices, the weakening New Zealand dollar and more reductions in the Official Cash Rate," the report says.