-
Related
The incoming Prime Minister John Key has had an economic briefing with treasury officials on Wednesday afternoon, and says the position is worse than what it was in the pre-election financial update.
However he says the bleak outlook won't threaten planned tax cuts.
On the plus-side, the Reserve Bank says the New Zealand's financial system is holding up and there is hope international markets could begin stablising within the next six months .
"We've never seen a freeze-up of the markets of this sort before, so we don't actually know quite how it opens up, but we would certainly hope to see in six months that markets are showing some sort of return towards normality," says Reserve Bank governor Alan Bollard.
However, not holding up so well is the economy, with some saying growth will slow to 1% next year.
It will be a tough year for the incoming PM, treasury officials told him the numbers are worse than a pre election update indicated last month.
But Key believes his round of tax cuts next year will stimulate the economy and keep the end of the world even further at bay.
