Dude, where’s my economy?
NZ to stay in recession next year – OECD
New Zealand's economy will remain in recession next year before lower interest rates, increased government spending and higher exports help to stimulate gross domestic product growth, the OECD said. The Organisation for Economic Co-operation and Development, whose 30 members are mostly high-income countries, said in its biannual economic outlook that Australia's economic growth would likely to slow next year, while unemployment is set to jump, dented by the fallout from the financial crisis and a darkening outlook for the world economy. For New Zealand, the OECD forecast GDP growth at 0.5 per cent in 2008, cut by a third from its June report, and then contracting by 0.3 per cent in 2009, slashed from a previous forecast of 2.1 per cent growth.
Want to know why oil has flat-lined – because the suddenness of the shut down of the global economy is extreme, VERY extreme, look at our GDP growth rate slashed from 2.1% to (gulp) -.3. Ouch – and there are now predictions unemployment will be 8% within two years and the Chinese economy is looking at a massive drop in growth next year as well. I wonder if anyone of the 80 000 NZers who may be unemployed in 2 years in a mACTional work environment where the boss can sack you within 90 days, I wonder if on their list of concerns they will have incandescent lightbulbs or shower heads? Oh and as for National’s Private-Public-Partnership solution – the brilliant Jane Kelsey explains why they won’t help whatsofucking ever…