31 March 2004 Media Statement

Decline in confidence sobering

Finance Minister Michael Cullen said the latest National Bank Outlook showing a fall in confidence at both the general and the enterprise level was sobering but not surprising given the February floods, the high dollar and ongoing geopolitical concerns.

“The results are consistent with slower growth in the year ahead, a prospect I have been signalling for some while.

“But the slowdown is expected to be modest by past standards and will be mitigated by a supportive policy environment.

“This includes yesterday’s announcements around Reserve Bank foreign exchange intervention and the coming budget which will contribute growth oriented policies and a mild fiscal stimulus,” Dr Cullen said.

ENDS

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