RBNZ sees recession extending through September quarter

The Reserve Bank has forecast the recession will extend through until the September quarter, before GDP bounces around 0.4% in the December quarter. "While we forecast growth to turn positive from the end of this year and gradually accelerate thereafter, it remains below average for much of the projection," the Reserve Bank said. "There are many factors contributing to this sub-trend outlook, including slowing trading partner growth, high import prices, contractionary monetary conditions, further house price falls, falling employment and the ongoing effects of higher credit costs and reduced availability of credit on household and business sector activity," it said.