New Zealand's National Bank said on Tuesday that the dismal results of its latest business confidence survey do not mean businesses are talking themselves into recession.
The bank's Business Outlook survey, released on Tuesday, suggests that the confidence of businesses in their own prospects has dropped to its lowest point in 17 years.
Chief economist Cameron Bagrie said there is a danger of overstating the prospect of economic downturn, though firms have some compelling reasons to be circumspect.
He added that the economy has been on an unsustainable growth path and part of readjusting imbalances will involve a lower currency.
Concern among exporters about the level of uncertainty in the New Zealand economy has also been expressed.
The survey also found export intentions have fallen to levels seen during the Asian crisis of 1998.
Export New Zealand chief executive Bob Walters said that is hardly surprising, with interest rates being so high and the New Zealand dollar over-valued.
He added that though some exporters have achieved good results, especially those in the dairy sector, others are finding things more difficult.
Source: Xinhua
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