Earthquake will boost GDP
If you read Brian Fallow in the Hearld this morning you will have come across some opinions of leading economists with regard to the economic impact of the earthquake. Canterbury contributes 15% of the New Zealand’s GDP but according to Nick Tuffley (ASB Chief Economist) every week of Canterbury operating at half capacity would shave 0.14% off GDP – approx 0.6%/month . It is generally regarded that in the longer-term the earthquake will boost GDP in the district. Fortunately the building sector has spare capacity unlike a few years ago and this should mean lower prices charged by suppliers. Some talk of the effects on tourism as well as the loss of business by supply disruptions to customers. Click here for the full article.