Monday, July 7, 2008

Goodbye good times, hello recession

It's almost official: The economy is in recession.

The independent economics group Infometrics says quarterly economic growth is expected to be "negative or close to zero" during the first three quarters of the year.

It adds that the next five years are not looking positive for New Zealand.

In its latest long-term forecast, which should come as a surprise to absolutely no one, Infometrics says the recession has been caused by high food and petrol prices, high interest rates and a slumping housing market.

The economy is set to grow only 0.5 percent in the year to March 2009, after years of 2 percent to 3 percent growth.

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