Necrosis in New Zealand
Shocking drops in industrial production and GDP
Necrosis - ne·cro·sis nə-ˈkrō-səs
Irreversible cell injury and eventual cell death due to pathological processes are termed necrosis. It is an uncontrolled cell death that results in swelling of the cell organelles, plasma membrane rupture and eventual lysis of the cell, and spillage of intracellular contents into the surrounding tissue leading to tissue damage.
I am not sure why they are shocked at these dreadful numbers. When you are running out of affordable energy and having to ration what is left, what the fuck did they think was gonna happen?
Were they expecting hobbits to be rounded up and their arses plugged into fart capture machines and the gas ignited to power turbines saving the day?
Power crisis cost the economy $300 million this year, expert says
Figures showed a 10 percent drop in industrial electricity use for the June to September quarter compared to the same time last year. Following the spot price soaring in that quarter, three North Island mills closed, resulting in the loss of hundreds of jobs.
Kidd said the industrial sector contracted production in response to what was happening.
Business leaders in the upper North Island met last week, where it was agreed high energy costs were one of the biggest handbrakes on the New Zealand economy. The group is working on a proposal to reform the electricity sector.
Kidd told RNZ's Nine to Noon on Friday the true hit to the economy was bigger than the $300m figure suggested. https://www.rnz.co.nz/news/business/536574/power-crisis-cost-the-economy-300-million-this-year-expert-says
New Zealand sinks into recession, more rate cuts coming
SYDNEY, Dec 19 (Reuters) - New Zealand's economy sank into recession in the third quarter as activity dived far more sharply than expected and output in the prior quarter was slashed, a dire result that cements the case for more aggressive rate cuts.
The shock news sent the local dollar to a fresh two-year low of $0.5614 , having already shed 2.2% in the wake of a hawkish easing from the U.S. Federal Reserve.
Markets added to wagers the Reserve Bank of New Zealand would slice rates further, having already cut by 125 basis points to 4.25%. Swaps now implied a 70% probability of a 50-basis-point cut in February, and rates were seen declining to 3.0% by the end of 2025.
Thursday's data showed gross domestic product dived 1.0% in the September quarter from the prior quarter, dwarfing market forecasts of a 0.2% contraction.
The June quarter was revised to show a fall of 1.1%, and two straight quarters of decline is the technical definition of recession. Setting aside the pandemic, this was the largest two-quarter decline since the painfully deep downturn of 1991.
"It was dramatically worse than anyone had expected," said Abhijit Surya, an economist at Capital Economics.
"Given the dire state of the economy, we now think risks are tilted towards a larger 75bp cut in February," he added. "We're more convinced than ever that the Bank will cut rates below neutral, eventually to 2.25%."
The outcome was way beyond the 0.2% drop forecast by the RBNZ, and came just two days after New Zealand's Treasury had predicted a fall of only 0.1%.
The weakness was spread across industries and particularly sizeable in manufacturing, utilities and construction. Household and government spending dropped in the quarter, while investment and exports also dragged.
New Zealand’s Version of China’s Ghost Cities
The government response has been to enact a ‘Fast Track Law’ allowing them to ram through anything and everything that involves building stuff, including subdivisions in areas that were not zoned for such projects. Residents who are attempting to oppose these developments are being told to:
One has to wonder who is going to be investing in these projects given the country is deep in recession and circling the drain.
And if they already have a deficit of affordable energy and that is causing inflation and de-industrialization, I fail to see how Fast Tracking projects does not result in more extreme inflation.
We have the potential risk of a domino effect in New Zealand. If too many of the frogs wake up to the catastrophe that is brewing and try to unload assets, the economy will implode.
Related
New Zealand is a Total Shit Show
New Zealand Update - Gas Shortages
The UK had to go cap in hand to the IMF back in 1976. North Sea oil bailed us out of that spot of bother but since it peaked in 1999 we have had to get by by using some very clever financial smoke and mirrors.
We ceased to be a sovereign country decades ago and are now totally dependent on the kindness of strangers(buying UK Gilts)
But at least they now have a good idea of how to keep us all locked down. Having said that it looks as though the power-house of Europe, Germany is holed below the waterline and could sink below the waves at anytime as well.
My household celebrates the Winter Solstice not the birth of some character invented by the Flavians, back in the day, in order to control the Jews in Palestine. Good to see nothing really changes. Anyway Keep Calm and Carry On.
Next year promises to be one long pantomime.
Coming soon to the USA.