Wednesday, June 11, 2008

Recession fears rise in New Zealand

A survey by the Royal Institution of Chartered Surveyors, published on Tuesday, showed house prices in Britain are falling at rates not seen in at least 30 years.

The situation in New Zealand is not as bad - yet. Today's figures from the Real Estate Institute, which show that house sales fell more than 50 percent in May from a year ago to their lowest level in 16 years, led analysts to predict further price declines.

These figures, plus today's report from Statistics New Zealand that seasonally adjusted export volumes fell 3.5 percent in the March quarter, stoked fears of a recession.

"You'd have to say that the chances of recession are increasing," said Mark Walton, economist at Bank of New Zealand.

The New Zealand dollar showed little reaction to the data, holding above a four-and-a-half-month low of US75c hit yesterday.


Kevin B said...

Here in the USA we talk about recession all the time. I had no idea that it is worldwide. I'm guessing that the international banks went as wild with their credit policies as the banks here in the states. Even Great Britain is complainning about falling house prices. Well, they can always move in with the Queen, she's got plenty of room.

Alan Ireland said...

It's about time they moved Mrs Queen out of the palace and into a London City Council flat. She could keep a few of her trinkets.