Treasury presented a gloomy forecast to the government today with the bad indicators going up and the good ones down.
They’re predicting unemploying rising to 7.5% and economic growth slumping to zero.
Yesterday’s release from Statistics NZ showing a 26% fall in the number of building consents issued in the year to November is a symptom of the slowdown. But given the international financial meltdown wasn’t evident until September the next lot of figures are likely to be even worse.
New houses are still being built in Wanaka but locals say that it’s much easier to get tradespeople than it was even a few months ago.
But what’s happening in New Zealand isn’t as important as events overseas because job losses and business failures there will further depress the volume and value of our exports.
Dairy products are generally considered staple foods but lamb is a luxury item in many people’s shopping baskets and luxuries go when belts get tightened.