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'The signs are positive' for New Zealand's economy despite slowdown - Reserve Bank Governor

Despite the slow down of New Zealand's economy, "the signs are positive" says Reserve Bank Governor Adrian Orr. 

TVNZ1's Q+A host Corin Dann last night asked Mr Orr if the New Zealand economy is at risk of stalling, after Treasury and the Reserve Bank both issued warnings to the Government that growth is now starting to slow.

Mr Orr said the slowdown was "very low risk", and their core forecast was that economic activity would pick up. 

"The signs are very positive. You've got a lower exchange rate, meaning we're earning more for our offshore efforts; the world growth is still very strong; the government is out spending and investing; households are still consuming, and business investment should be increasing."

Read more: Simon Bridges says unchanged OCR shows Reserve Bank Governor's shaken faith in the economy

He said the Reserve Bank do not "take any notice" of business confidence indices.

Dann asked if the Government's argument that business uncertainty developed from the shifted focus from house prices to supposedly an export-driven economy, held up. 

"I do buy that," Mr Orr said.

"That was all about more people, more consumption and thus wealth. Looking forward, it’s about driving growth."

"Looking forward, it’s about driving growth," Adrian Orr said. Source: Q+A