New Zealand's Economic Development Minister Steven Joyce does not believe falling dairy prices will lead to a recession.
"No, I don't think so unless we talk ourselves into it," he told TV3's The Nation program on Saturday.
He said a 19 per cent fall in the New Zealand dollar was countering the impact of lower dairy prices and other export industries were performing well.
On Friday, BNZ economists cut their Fonterra payout forecast as the GDP outlook dampened, leading the bank's head of research, Stephen Toplis, to suggest it was not hard to envisage a situation where a recession became imminent.
The government is struggling to post budget surpluses.
Mr Joyce said the government accounts for the 11 months to May were due on Tuesday.
"I think once again they will show some of the weaknesses of Treasury's forecasting in a good way."
He said if the government achieved a budget surplus in the year to June 30, 2015, it would be easier to get one in 2015/16.
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