New Zealand is facing an economic crisis far greater in scale than the health crisis posed by Covid-19, former prime minister Sir John Key says.
“We are in the very early part of what is going to be a very significant contraction of the economy here in New Zealand and globally,” Key said.
The former National Party leader and three-term prime minister said consumer confidence and buoyant equity and property markets were being propped up by low interest rates and were not a true reflection of the real economy.
“Don’t underestimate how weak some parts of the sector are.”
Private payrolls increased by 167,000 in July, well below Wall Street estimates of 1 million.
All but 1,000 of the jobs came in the services sector.
June’s payroll count was revised sharply upward to 4.3 million, but the jobs market is nowhere close to recovering the damage from March and April.