Cullen backtracks on recession
Posted on Tuesday, March 28, 2006 at 10:09 AM | Permalink
Having ridiculed Don Brash for even suggesting there could be a recession back in January, Michael Cullen is now trying to talk the possibility down following the announcement of -0.1% GDP growth for the December quarter.
Brash in January:
"If business confidence stays around current levels - and this Government is doing nothing that might help avoid that - we are almost certainly headed for a recession. And unlike the brief recession of 1998, there won't be an Asian crisis or two successive years of drought to blame for it."
Cullen in February:
"To talk, as some have, of falling into recession is both naive and a little dangerous. It is naive because it betrays an ignorance of economic history; and it is dangerous because if we are not careful we may talk ourselves into a recession that we don't need to have."
Cullen on March 16:
"The first couple of months of the year have seen some rather loose talk about recession, and I am very grateful to the growing number of business people and economists who are joining me in pouring cold water on this... The truth is we don't have a recession..."
Stats NZ on March 24:
"Economic activity decreased 0.1 percent in the December 2005 quarter, following an increase of 0.1 percent in the September 2005 quarter."
Cullen on March 28:
Dr Cullen does not expect a recession, with positive growth projected for the march quarter - but if there was to be one it would be about as short and small as a recession could possibly be, he said yesterday. - Dom Post page A3
Brash in January:
"If business confidence stays around current levels - and this Government is doing nothing that might help avoid that - we are almost certainly headed for a recession. And unlike the brief recession of 1998, there won't be an Asian crisis or two successive years of drought to blame for it."
Cullen in February:
"To talk, as some have, of falling into recession is both naive and a little dangerous. It is naive because it betrays an ignorance of economic history; and it is dangerous because if we are not careful we may talk ourselves into a recession that we don't need to have."
Cullen on March 16:
"The first couple of months of the year have seen some rather loose talk about recession, and I am very grateful to the growing number of business people and economists who are joining me in pouring cold water on this... The truth is we don't have a recession..."
Stats NZ on March 24:
"Economic activity decreased 0.1 percent in the December 2005 quarter, following an increase of 0.1 percent in the September 2005 quarter."
Cullen on March 28:
Dr Cullen does not expect a recession, with positive growth projected for the march quarter - but if there was to be one it would be about as short and small as a recession could possibly be, he said yesterday. - Dom Post page A3
