WELLINGTON, Aug 11 (Reuters) - New Zealand's economic recovery will be patchy because of uncertain global economic environment, the Finance Minister Bill English said on Wednesday.
English said the global environment and the need for businesses and households to pay down large stocks of debt will keep the domestic economic recovery patchy.
'In this credit-constrained world, the recovery will need to come first from the earnings side of the economy such as exports,' English said in a speech to the New Zealand Council for Infrastructure Development.
Referring to Australia, he said the neighbour clearly has the edge at the moment due to strong demand for its commodities.
'As a result, Australia's minerals boom is likely to mean it will perform better than New Zealand in the near term, but it is the long-term trend we are determined to turn around,' English said.
(Reporting by Mantik Kusjanto; editing by Balazs Koranyi)
((mantik.kusjanto@thomsonreuters.com; +64 4 471 4232;
Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net Keywords: NEWZEALAND ECONOMY/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
English said the global environment and the need for businesses and households to pay down large stocks of debt will keep the domestic economic recovery patchy.
'In this credit-constrained world, the recovery will need to come first from the earnings side of the economy such as exports,' English said in a speech to the New Zealand Council for Infrastructure Development.
Referring to Australia, he said the neighbour clearly has the edge at the moment due to strong demand for its commodities.
'As a result, Australia's minerals boom is likely to mean it will perform better than New Zealand in the near term, but it is the long-term trend we are determined to turn around,' English said.
(Reporting by Mantik Kusjanto; editing by Balazs Koranyi)
((mantik.kusjanto@thomsonreuters.com; +64 4 471 4232;
Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net Keywords: NEWZEALAND ECONOMY/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.