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IBT: New Zealand Minister, Economists Slam U.S. Analyst for ‘Alarmist’ Article on NZ Economy Going to Recession

New Zealand’s economy has been previously likened to Ireland. In a Bloomberg report, SLJ Macro Partners Stephen Jen and colleague Faith Yimazn said it was only a matter of time before the New Zealand dollar will decline. Both analysts remarked that the reality is “quite different” despite the Kiwi dollar’s strong performance as of late. The analysts told Bloomberg they were not convinced with the Kiwi despite New Zealand’s growing economy, high-yielding currency and high terms of trade. They said New Zealand reminded them of European countries and emerging markets before the crisis hit them. According to Mr Jen and Mr Yimaz, New Zealand has a growth model based on debt and credit, current account deficits and low savings rates

Read the original article on the ‘International Business Times’ website.

Posted on the 22/04/2014 at 2:41pm by joana.