The New Zealand economy is grappling with headwinds, primarily high inflation and rising interest rates, according to a report by the New Zealand Institute of Economic Research.
These challenges add to continued labor shortages, with the impact of the COVID-19 pandemic still evident, particularly in the services sector. These factors are weighing on the economic recovery, with signs of slowing activity across many industries, the institute’s principal economist Christina Leung said on Wednesday.
“Cost pressures remain intense for households and businesses, and this is driving pessimism,” Leung said, adding that central banks around the world have responded to the surge in inflation by increasing interest rates at a rapid clip.—Xinhua
