New Zealand could enter a recession later than expected
New Zealand could enter a recession later than expected
18 January 2023
The Reserve Bank is predicting a shallow recession is likely to hit about halfway through the year, as it continues to hike the Official Cash Rate to rein in inflation.
New forecasts from Westpac suggest higher mortgage rates will ripple through the economy, forcing household to rein back spending.
Senior economist Satish Ranchhod says the recession might not hit until later in the year.
He says it's likely to extend into the early part of 2024, and the resulting slow-down in economic growth will see unemployment trend higher in the next few years.
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