Consensus forecasts show two years of declining output

"Amy Adams: What is the outlook for economic growth as reflected by the consensus forecasts? Hon BILL ENGLISH: The consensus forecasts show 2 years of declining output. GDP is projected to decline by almost 1 percent in the year ending March 2009, and by a further 0.6 percent over the 12 months after that, through to March 2010. That will have a considerable impact on Government revenues. Amy Adams: What does this outlook imply about the basis for future growth? Hon BILL ENGLISH: I wish the forecasts could show that there was a strong basis for future growth, but actually they show how poorly the foundations for growth have been laid over recent years. The previous Government oversaw a period of growth based on an unsustainable credit-driven boom, notably in housing, and very low productivity. This boom is now reversing in spectacular fashion, and it will take a considerable period of well-founded economic policy to lay some foundations for growth. " - Parliament TV