So here we are then, “roaring out of recession”:
Economy stagnates, dollar dives
New Zealand’s economic growth slowed more than expected in the second quarter and the dollar dropped straight after the low number came out.
Gross domestic product (GDP) grew 0.1% in the three months ended June 30, according to Statistics New Zealand, hurt by a slowdown in the construction and mining sectors.
The New Zealand dollar shed some value in response , sinking to 79.91 US cents. It was 80.40 cents immediately before the release, having already lost two cents overnight.
TVNZ Business presenter Nadine Chalmers-Ross says the GDP number is a surprisingly weak figure.
“Most of the experts were picking this quarter to be weaker than what we saw in the first three months of the year but not this weak,” she said.
“Perhaps it’s a timely reminder that while we are recovering, it is still ongoing and not there yet”.
Perhaps its a timely reminder that in 2008 we backed the wrong horse.