Don't miss

Replay


LATEST SHOWS

YOU ARE HERE

Baccarat, the crystal of princes and presidents

Read more

FOCUS

The plight of civilians in Darfur's forgotten conflict

Read more

IN THE PAPERS

Sepp Blatter: Love him or loathe him

Read more

IN THE PAPERS

'Platini bites back, but Blatter holds on'

Read more

INSIDE THE AMERICAS

Mexico: New bloodbath linked to drug trafficking

Read more

BUSINESS DAILY

Michael Jackson's Neverland Ranch goes on sale for $100 million

Read more

MEDIAWATCH

Cameron's EU charm offensive

Read more

TALKING EUROPE

'No appetite among member states' to revise EU treaties for UK referendum

Read more

TALKING EUROPE

Greener and fairer? EU revamps Common Agricultural Policy

Read more

Asia-pacific

New Zealand quake to cost billions

Text by News Wires

Latest update : 2011-03-06

New Zealand’s government said Sunday that the earthquake that shattered Christchurch in February will cost the country an estimated $11 bn and slash GDP growth by half.

AFP - The New Zealand earthquake will cost the country up to NZ$15 billion (US$11 billion) and knock gross domestic product growth down by 1.5 percentage points, the Treasury department said Sunday.
              
But it predicted an economic boost next year when rebuilding is under way following the 6.3 magnitude earthquake on February 22, which devastated the main South Island city of Christchurch.
              
"We estimate that GDP growth will be around 1.5 percentage points lower in the 2011 calendar year solely as a result of the February earthquake," the Treasury said in its monthly report.
              
The Treasury had previously forecast that GDP, which is worth around $125 billion dollars, would rise 3.0 percent in 2011.
              
"From 2012, the recovery will bring a sizeable boost to residential, commercial and infrastructure investment, placing upward pressure on prices depending on the rate of rebuilding," the Treasury said.
              
The department said the earthquake had a large cost in economic and human terms -- with a death toll at 166 and expected to pass 200 -- and emphasised its estimates were early and tentative.
              
"The outlook for the New Zealand economy was weaker even before the earthquake as domestic demand was soft despite income gains from high commodity prices," it said.
              
It said the domestic developments also occurred against an international backdrop of political unrest, high commodity prices and rising inflation.
              
The Treasury said the cost of the quake was likely to be two to three times greater than the $5 billion tag put on the 7.0 earthquake that hit Christchurch last September.
              
Finance Minister Bill English said the preliminary assessment confirmed the need for the government to carefully consider its priorities.
              
He said paying for the earthquake was likely to involve "a bit more borrowing in the short term" and changing spending priorities.

 

Date created : 2011-03-06

  • NEW ZEALAND

    Dozens killed as earthquake hits Christchurch

    Read more

  • NEW ZEALAND

    Quake toll rises, hopes fade

    Read more

  • NEW ZEALAND

    New Zealand gives up search for quake survivors

    Read more

COMMENT(S)