By Oliver Marc Hartwich
10 March 2011
The earthquake that struck Christchurch two weeks ago was not only a national catastrophe for New Zealand. It is also becoming clear how devastating it is to the Kiwi economy. The New Zealand Treasury estimates an impact of 1.5 per cent of GDP, or $NZ15 billion, for this year. Prime Minister John Key went further and warned that the country’s economy could stand still in 2011 instead of growing 2.5 per cent, as initially forecast. The consequences for public finances will be substantial in any case.