Investors 'now uncertain’

Press, Volume CXV, Issue 33779, 27 February 1975, Page 18

Investors ' now uncertain’

'.ve<j Zealand Preiu Association!

AUCKLAND, February 26. Uncertainty among investors over the short-term outlook and the severity of any recession in New Zealand was now showing its effect, the Minister of Finance (Mr Tizard) said tonight.

Speaking to the Auckland branch of the Institute of Architects, Mr Tizard said that this was only to be expected in a world where, for the second year in succession, the combined growth and output for the seven largest non-Communist nations was expected to fall or be zero. This affected world trade, and consequently New Zealand, which as a nation was so dependent on world trade, | he said.

But, Mr Tizard said, there were signs that these nations were beginning to reflate their economies to stop unemployment. “I expect these policies will reflect on the world economy if not by the end of this year then by early 1976," he said.

There were also increasing signs that the level of imports was dropping. Forward, orders had been declining atan increasing rate over the last six months, and the first indications that actual pay-1 ments were easing were now ; being seen.

But the Government intended to maintain confidence. and was stimulating selective activities such as housing, fanning, exports, and manufacturing, to ensure a continuing “reasonably high level of investment,” he said.