Claims recession is likely under Labour

NZ Herald,
Publish Date
Wednesday, 22 November 2017, 3:16PM
Prime Minister Jacinda Ardern and Finance Minister Grant Robertson. (Photo/NZ Herald)
Prime Minister Jacinda Ardern and Finance Minister Grant Robertson. (Photo/NZ Herald)

The National Party has seized on an opinion piece published on the Forbes website that warns of a likely recession under Jacinda Ardern's leadership.

Forbes contributor Jared Dillian, a US-based former Lehman Brothers trader, is critical of the new Government's plans to reform the Reserve Bank, reduce immigration and ban foreign buyers of existing homes.

"Banning foreign ownership of property sets the country up for a possible real estate crash," Dillian writes.

"It seems likely that New Zealand will experience a recession during Ardern's term. Nobody is predicting a return to the bad old days of the 70s, but New Zealand will probably lose its status as one of the most open, free economies of the world.

"It takes decades to weaken an economy, just like it takes decades to strengthen it. But investors will probably want to avoid New Zealand for the time being."

The article has been shared by the National Party on social media.

It is the second recent comment piece published by an overseas media organisation to be critical of the new Labour-led Government.

Earlier this month, Washington Post contributor Ben Mack had a piece published headlined, "How the far right is poisoning New Zealand", claiming NZ First's influence was a "shadow poisoning Middle-earth".

- NZ Herald

ON AIR: Marcus Lush Nights

8PM - Midnight