1.
2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009

2.
The biggest destruction of global wealth ever? $3 trillion Lost output $4 trillion Housing $30 trillion Equity Markets $2 trillion Credit-related losses Value loss (est. $US)

3.
Trading partner growth slows Asian Crisis Tech Bubble Sars Financial Crisis

4.
Trading partner growth slows Asian Crisis Tech Bubble Sars Financial Crisis

5.
Lower growth world must adjust Consumption, currencies Reserves Savings, exports Currencies

6.
New Zealand has strengths… <ul><li>Past strong growth, low unemployment </li></ul><ul><li>Flexible product and labour markets </li></ul><ul><li>Floating exchange rate & hedging </li></ul><ul><li>Responsive monetary policy </li></ul><ul><li>Strong government accounts </li></ul><ul><li>Sound banking system </li></ul>

7.
… but we don’t escape unscathed

8.
… but we don’t escape unscathed New Zealand

9.
Domestic credit growth Agriculture Business Household

10.
Intended Investment & Employment Investment Employment

11.
How we cope <ul><li>New Zealand has some strengths but also vulnerabilities </li></ul><ul><li>We will play our role </li></ul><ul><li>Banks must also play a key role </li></ul><ul><li>You will all be affected. We want to hear your ideas…. </li></ul>