New Zealand spirals toward recession

New Zealand’s economy has finished 2022 in a sick state according to the Westpac McDermott Miller Consumer Confidence survey. Second, household finances have been smashed by large increases in borrowing costs in response to 4.0% of rate hikes from the Reserve Bank. “For example, borrowers who fixed for two years in 2020 may have secured a rate in the 2.5% to 3% range. Increasing numbers of New Zealanders also expect that economic conditions more generally will deteriorate over the next few years. Finally, Westpac “expect that spending will continue to weaken over the year ahead as borrowing costs push higher and the pressure on households’ finances builds”.