GLOBAL OUTLOOK – The Waiting Game
Posted on July 16, 2012 by Colin Wong Areinz (Waitakere Real Estate Mreinz REAA 2008)
With no details yet emerging from the EU summit, markets remain wary. With Greece in its fifth year of recession and the unemployment rate at 23%, Greece has asked for some modifications to the austerity program. Elsewhere, EU leaders are focused on immediate help for Spain and Italy, which will help chart a path out of their financial crises.
The deteriorating global outlook is an unhelpful backdrop for NZ’s necessary economic rebalancing from spending to earning. Deleveraging still has a number of years to play out and will dampen growth trends, however, lower mortgage rates and the Christchurch rebuild will provide an offset.
Filed under: REAL ESTATE | Tagged: Real Estate