11 October 2001 Media Statement

Confidence drop inevitable under the circumstances

“The decline in confidence featured in the latest Quarterly Survey of Business Opinion was to be expected given the continuing economic and political fallout from the terrorist attacks on the United States,” Finance Minister Michael Cullen said today.

“Australia has also tumbled into negative territory. The fall has been sharper here but, in both countries, has been driven primarily by the deterioration in world growth prospects.

“It is significant, for example, that the ‘domestic trading activity’ measure in the QSBO remains positive.

“Obviously, as a trading nation, we cannot immunise ourselves against the effects of the global slowdown. But the competitive dollar, robust export commodity prices and the recent reductions in interest rates mean that the New Zealand economy in good shape to weather the turbulence,” Dr Cullen said.

ENDS

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