Welcome to the November 19 2009 issue of the BNZ Weekly Overview.
Last week we looked at how some sectors of the economy are still shrinking and why one could therefore not describe the upturn as robust. This week we look at factors which have the capacity to boost our economy by near 2.5% next year and 3.5% over 2011 once one takes into account some relatively significant negative factors in play – like the high NZD.
We also look at the housing market and how prices can so easily rise and stay up – then rise further – with no evidence of accelerating, lending growth, and still mild turnover. We also explain why rising house prices in no way indicate broader inflationary pressures in the economy against which the Reserve Bank would need to act.