PHOTO: DAVID WHITE/STUFFThe Government needs to focus on what it can do to help get people through to the other side of the coronavirus disruption, BNZ says.
Tt is now probable – not just plausible – that New Zealand’s economy will enter a recession, BNZ’s economists say, and we shouldn’t expect the Government to be able to do anything to turn it around.
In a market update, head of research Stephen Toplis said a best-case scenario would result in growth a “smidgen above zero” in the first two quarters of this year.
“In contrast, the downside risk is building by the day. We are thus now formally forecasting at least two quarters of negative growth,” he said.
He said it was not like a cyclical downturn that would continue to spiral downward without intervention.
“What can the Government or central bank do to stop a virus spreading?
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