New Zealand Economy Over The Worst

September 15, 2008

Finance Minister Michael Cullen thinks the worst of the economic downturn is over and that Labour’s tax cuts will help push the economy back into positive growth just as voters head to the polls for the General Election, expected soon. Dr Cullen was reported as saying last week that he was “very confident” the economy would pick up in the fourth quarter as Labour’s October 1st tax cuts came into effect, because the drought was over and the weakening NZ dollar would help the export sector. “There are a lot of factors coming together there. I think probably the worst is over now,” he said. He added that last weeks interest rate cut would help the economy rebound and he pointed to improving business confidence and consumer confidence surveys as indicators that the country was through the worst. There will be plenty of people in Britain wishing that they could say the same.