Deadly Quake hits fragile New Zealand economy


Also see this: Did solar flares trigger the Christchurch earthquake?

(CNN) — As rescue crews continued to search through the rubble for survivors of the deadly Christchurch earthquake, Tuesday’s temblor already has shaken confidence in New Zealand’s fragile economy.

The New Zealand dollar, known as the kiwi, dropped about 2% in trading in the hours following the quake, which struck in the early afternoon in the country’s financial center and second largest city. The earthquake comes just five months after a nighttime earthquake hit the city, causing $3 billion damage to the area but no deaths. Tuesday’s quake was centered closer to the city and shallower than the September quake, causing more damage and deaths during the busy lunchtime hour when it struck.

“Whatever rebuilding that was going to occur [after the September quake] was only just getting started, so you have to presume that process has to start all over again,” said Michael Turner, a strategist at RBC Capital Markets in Sydney.

New Zealand’s economy was already limping after credit ratings agencies put the government on negative watch late last year due to growing debt. New Zealand was hit hard by the financial crisis with high levels of government and household debt. Government leaders have promised an austere budget and the sale of state assets to return the nation’s budget to a surplus by 2015.

Citibank Group had forecast that the Reserve Bank of New Zealand would increase interest rates this year, but Citibank economist Akash B. Reddy believes the new earthquake makes any interest rate hike unlikely until the latter half of 2012. “We may even see an interest rate cut,” Reddy said.

Economists predict that the economic impact of disasters such as Christchurch quake or the floods that devastated areas of Australia are short-term — in the long run, economies bounce back and beyond due to added investment and jobs created in the rebuilt.

“But the big question is, how long will it last?” Reddy said. “The medium term gains tend to be more than the short-term loss, but the short-term loss is much more damaging to confidence … along with other factors, there is potential risk of a negative feedback loop on the economy.”

And any economic upswing from a rebuild cannot account for the loss of life, personal property and impact of seeing iconic local structures like Christchurch Cathedral left in ruins, analysts say.

“It’s a fairly big hit to consumer and business confidence,” Turner said. The Christchurch area makes up about 10 to 15% of the national economy “and that’s going to shut down for a few weeks,” Turner said.

Coming on the heels of September’s earthquake, “I think you’ll be seeing a lot of people collecting their insurance money and deciding to relocate instead of rebuild, especially if you’ve been dealing with aftershocks [in Christchurch] for six months — and now this,” Turner said.

Also see this: Did solar flares trigger the Christchurch earthquake?

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5 Responses

  1. Mike says:

    This earthquake will hit New Zealand a lot harder than the floods hit Australia. Australia has a much stronger economy and a higher savings level. New Zealand is vulnerable to rising oil prices (per capita it is a very heavy oil user) and is about to be hit by a wave of retirees who have limited private savings. To make matters worse it does not have mean tested pensions so everyone gets a public pension even if they are a billionaire.

  2. JURMBenISman says:

    IL sito è posto sotto il profilo Filosofico – Spirituale – Religioso e sarà attivo fino a metà Marzo 2011 dato gli eventi che ritengo pressochè sicuro siano in arrivo, a tale motivo ho ritenuto in conseguenza darne disdetta almeno momentaneamente fino a nuova visione dell’Umanità dei Figli di DIO e del Mondo Rigenerati, per il dopo, chi vivrà vedrà.

    Prima che il caos sopraggiunga, metto da parte il ragiona-mento e la costruzione intellettuale per ritrovare e riconoscere definitivamente casa esteriore e interiore nel Tempio Tabernacolo del mio cuore, dove ritrovo pace, dove ritrovo silenzio, dove ritrovo Amore Infinito Avvolgente, dove ritrovo DIO UNO IN SPIRITO, QUALE UNICO NOSTRO CREATORE.

    Mi con-cedo e abban-dono a DIO UNO, QUALE NOSTRO UNICO CREATORE, che possa essere eternamente suo strumento Terreno e Celeste.

    AMATI FIGLI DI DIO, SI PRENDA ATTO. (messaggio sublime e conforto totale)

    Dell’Imminente Ascensione nei Cieli in Corpo, Mente, Anima e Spirito per i Figli di DIO ad opera di Gesù Cristo che ci Salverà dall’annientamento per poi essere Reinseriti sulla Terra una volta Purificati e Rigenerati, noi saremo tramite la Divina Discensione di nuovo posti SOPRA la SUPERFICE della Nostra Meravigliosa Nuova Terra Rigenerata e in un Nuovo Cielo Inseriti sempre ad opera di Jesus Cristus nostro Signore.

    Si Preghi con Fervida Fede in DIO UNO ONNIPOTENTE in attesa del Ritorno della Venuta del Signore Jesus Cristus nostro Salvatore.

    IN NOME DEL PADRE, DEL FIGLIO E DELLO SPIRITO SANTO GENERATORE DI MARIA MADRE DI DIO, COSI’ SIA, ( dove nella Tradizione più antica implica che lo Spirito Santo possa coincidere con il principio Generatore Femminile. )


    Brevissima Riflessione di Monsignor Antonio Riboldi : DIO è davvero un grande Oceano di Amore che a parole è impossibile conoscere. Ma a noi Lui chiede di avere Fiducia nel suo Amore e di Amarlo con tutte le forze. Ed è quello che conta più che le nostre parole sempre tanto povere.
    Benedetto e felice è colui che si leva a promuovere i migliori interessi dei popoli e delle tribù della terra, ancora: Ci si deve gloriare di amare il Mondo intero quale unico Paese e L’Umanità quale suoi cittadini”. Bahà’ù’llàh

  3. Luke 21:11 There will be great earthquakes, famines and pestilences in various places, and fearful events and great signs from heaven. Matthew 24:7 Nation will rise against nation, and kingdom against kingdom. There will be famines and earthquakes in various places. As it was in the days of Noah, so it will be at the coming of the Son of Man. For in the days before the flood, people were eating and drinking, marrying and giving in marriage, up to the day Noah entered the ark; and they knew nothing about what would happen until the flood came and took them all away. That is how it will be at the coming of the Son of Man.

    • Abaddon says:

      Revelation chapter six describes GOD’S “Four Horsemen of the Apocalypse,” as bringing even MORE war, MORE hunger, MORE death on an already used and abused, terrorised, terrified, divided, starved, diseased, human family, that has suffered at the hands of GOD for six thousand years. Take note, those four horsemen are GOD’S horsemen, creating MORE suffering for mankind. This GOD that these people worship has proven to be the most effecient killing machine of man, who has killed more of the human family than all despots put together. From Genesis to Revelation he has recorded his bloodthirsty and sadistic war of attrition against we whom he calls his “children.” This God wiped a WORLD out in Noah’s day. The track record of God makes Satan look like Mother Theresa’s right hand man.

      Who put the threat of death in a Paradise? It was not the Devil?
      Who put good and evil before man in the first place? It was not the Devil?
      Who drove man and woman out of Eden? It was not the Devil?
      Who cursed the ground to man’s loss and pain? It was not the Devil?
      Who greatly increased the pain of pregnancy upon woman? It was not the Devil?
      Who destroyed the world in Noah’s day? It was not the Devil?
      Who turned the Jews into a war machine? It was not the Devil?
      Who declared war on the human family? It was not the Devil?
      Who has repeatedly threatened the human family? It’s not the Devil?
      Who decreed the wiping out of millions in the Promised Land? It was not the Devil?
      Who is bringing about the war of Armageddon? It’s not the Devil?
      Who has his Four Horsemen of the Apocalypse bringing untold woes upon the human family? It’s not the Devils horsemen?
      Who has spoken in the vilest of language of what he would do to the human family and do it he has? It was not the Devil?
      Who threatens man with hell, purgatory and death, if we do not listen to him?
      It is not the Devil?
      And on and on it goes, need I say more!!!

      Amidst all of this abuse and brutality, God offers the possibility of a paradise, heaven, utopia, and an eternal afterlife. He needs to offer such a staggering prize so that we will turn two blind eyes to the outrageous abuse that he has inflicted upon us! He appeals especially to the religiously inclined, those who see only their own interests, who fear death, are afraid of the unknown, grasping at anything God might offer them, never mind how it is achieved. They would walk over the dead bodies of their own families to live, and God exploits their fear of death, and it is his major weapon in his war against us all! For who has used it more than he? These grand rewards offered by God are to distract us from his outrageous behaviour towards his own creation, and appeal to our fears and self – preservation!

      So who is the greatest tempter of all? It’s not the Devil?

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