PHOTO: Sir John Key
A leading economist says New Zealand’s post-lockdown economic rebound may be ending but comments by former Prime Minister John Key that a crisis is coming isn’t a term people should “throw around”.
On Wednesday, Key said “we have a financial crisis coming” during a keynote speech at a COVID-19 summit in Auckland.
Cameron Bagrie told The AM Show on Tuesday that while times are tough and a financial crisis was a potential scenario, it shouldn’t be a central focus at the moment.
“At the moment New Zealand is facing all the downs; down one was the lockdown – down two is the shutdown; border control that’s going to remain for a while, down three is slowdown; the global economy is slowing.
“The Chicken Little scenario and the one we need to be careful about talking about is the potential for a meltdown – that’s the financial crisis. That’s a scenario – I wouldn’t put it out there as a central one at the moment.”
Bagrie said certain things could impact whether New Zealand enters a crisis, including how long COVID-19 stays around for.
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