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Business Scoop » Labour Shortage Sting Set To Cause Issues For Years According To Latest ASB Quarterly Economic Forecast

Press Release – ASB Bank   New Zealands labour shortage has intensified and is likely to last years. Inflation is likely to spike to 4% the highest its been since GST was increased in 2010 and then settle around 2.5%. ASB expects the OCR to reach 1.5% … New Zealand’s labour shortage has intensified and is likely to last years. Inflation is likely to spike to 4% – the highest it’s been since GST was increased in 2010 – and then settle around 2.5%. ASB expects the OCR to reach 1.5% which will flow through into interest rates. There are positives and negatives in the latest ASB Quarterly Economic Forecast as New Zealand continues to bounce back strongly from COVID-19. The closed border is putting additional strain on the country’s labour market with ASB warning the impacts could last several years.

Calculated Risk

7/22/2021 02:01:00 PM Note: At the beginning of the pandemic, the delinquency rate increased sharply (see table below).   Loans in forbearance are counted as delinquent in this survey, but those loans are not reported as delinquent to the credit bureaus. • The national delinquency rate hit its lowest level since the onset of the pandemic and is now back below its pre-Great Recession average • Despite the improvement, there are more than 1.5 million homeowners 90 or more days past due on their mortgages but who are not in foreclosure, still nearly four times pre-pandemic levels • Serious delinquency rates remain elevated by more than a full percentage point across all 50 states, with Hawaii and Nevada serious delinquency rates remaining elevated by 3.4 percentage points

Calculated Risk

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