NZ plans for recession

PHOTO: BORIS ROESSLER The coronavirus has sent global stockmarkets tumbling.

The Government is designing a stimulus package in case the economic shock spurred by Coronavirus turns into a recession.

Finance Minister Grant Robertson, in a sit down interview with Stuff, said that while he isn’t forecasting a recession, the nation’s top bureaucrats have been tasked with preparing a macroeconomic package in case it is required.

“We’re not predicting it still, but we directed officials yesterday [Monday] to pull together a macro-economic package that would recognise that we were moving into a sustained global downturn,” Robertson said.

Finance Minister Grant Robertson stressed the Government wasn't predicting a recession - but was working on a plan it could use if one came along. — ROSA WOODS/STUFFFinance Minister Grant Robertson stressed the Government wasn’t predicting a recession – but was working on a plan it could use if one came along.

It comes as stockmarkets tumbled around the world this week, and the ANZ New Zealand Business Outlook put firms’ “activity intentions” at its lowest level since the global financial crisis and “export intentions” at its lowest level ever. On Monday, BNZ economists said that a recession was now probable. On Tuesday the bank’s chief economist said that export expectations had been “pole-axed”.