Going with the population flow

Weakening confidence, drought, low dairy prices, and a lull in investment are all shocks being experienced by the New Zealand economy, and are all factors that would normally be associated with a recession. As established in our recent forecasts, we do expect these factors to lead to lower spending by households and a near stalling in economic activity per person over the next year. However, the saving grace for the overall economy is the growth in the number of people who will be in New Zealand – both permanently and temporarily.