N.Z. Deputy Prime Minister Says Strong Currency Weakens Economy

Published April 2nd, 2009 - 02:15 GMT

In a radio interview broadcast within the past hour, New Zealand’s Deputy Prime Minister Bill English stated that a strong New Zealand currency will make it tough for the economy to recover. He then assured the audience that his economy was indeed still in a recession.

Now entering what is likely to be a fifth consecutive quarter of contracting economic growth, the New Zealand government must battle an unemployment rate that has jumped to 4.6% from 4.2% just three months prior.

Since bottoming in the first week of March, their domestic currency has strengthened by as much as 18.53% against the U.S. Dollar and as much as 13.3% on a trade-weighted basis.

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