BNZ: no economic quick fixes

BNZ chief economist Tony Alexander says the results of an HorizonPoll economic outlook  survey are not at all surprising.

The March 21-25 survey of more than 2000 voters finds more people believe the economy will decline this year rather than grow. Among A majority of bhusiness decision makers believe it will decline.

The Sunday Star Times reports Alexander as saying:  The Christchurch and Japanese quakes had created a high degree of uncertainty and until the impacts of those two events became clearer, confidence in the economy would remain low.

"The economy was very weak last year and there was no sign of growth accelerating, even before February 22. Basically I think a lot of people who have been waiting for the economy to show faster growth have been disappointed for all the last year and that has made consumers and business people just a bit more cautious about forecasts of things getting better."

Alexander said it would take time for confidence levels to pick up and there were no quick fixes in the wind.

"It's all about passage of time," he said. "There is no accelerating this, time will bring improving economic conditions."