NZ economy back in 2005 due to recession after the chase for short-term borrowed growth came to an end, NZIER says

New Zealanders shirking off economic concerns with credit card applications once again on the rise; Baby Boomers leading the charge

Higher tax take, lower expenses means govt deficit before gains and losses could be NZ$700m better than expected at NZ$16b, Treasury says

EQC costs see govt budget deficit in 8 months to Feb 23% worse than forecast in Dec, Treasury says

Opposition parties launch attack on government's economic policies in wake of quake, argue more taxation needed

Govt likely to increase borrowing after quake, but still targeting surplus; third quake would be a struggle, English says. Should NZ borrow more?

Veda Advantage sees 'massive' deterioration in overdue debts; points to 'fundamental shift' in approach to debt and spending

Finance Minister Bill English is concerned about a return to borrowing and spending on housing, particularly with a high exchange rate that was hurting exporters, NZHerald reported. English said that in the long run, the economy needed to shift away from borrowing and spending and that a return to this "can't last." English also said tax reform was needed to encourage investment and discourage spending on housing and consumption. "There is some evidence at the moment that the recovery could consist of a pick up in housing," English said. An Infometrics report released yesterday forecast national house prices would rise 24% over the next three years, sparking a large debate on interest.co.nz. "Now that's more of the problem than we had before and it would be a concern particularly if it goes with a high exchange rate that punishes our exporters," English was reported as saying. "If we go back to more borrowing for houses and more spending then that can't last."

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