Saturday, December 31, 2011
Reserve Bank's forecasts discouraging
"GDP growth is now expected to total 8.3% over the next three years: back in September the Reserve Bank's forecast was for 9.1%. Volatility from the Eurozone and a 'modest' downturn in the hitherto booming Asia-Pacific export markets are all cited as reasons for a more restrained growth path.
"A 'soft' domestic economy is the other main reason.
"Several factors are driving this: the almost daily news diet of economic crises in the north Atlantic economies is having an effect on consumer and — to a lesser extent, surprisingly — business sentiment. The noises of financial panic from offshore will also have a more tangible impact on retail interest rates."
The cartoon is from the Manawatu Standard of December 17, 2011.