The Government might want to think about cutting the GST rate if the economic cycle turns ugly.

That's the suggestion from the International Monetary Fund in its latest report on the New Zealand economy, released last weekend.

The context is one where the local and global economies are losing momentum, as the bank acknowledged on Wednesday: "Global trade and other political tensions remain elevated and continue to subdue the global growth outlook, dampening demand for New Zealand's goods and services," it said.


"Global long-term interest rates remain near historically low levels, consistent with low expected inflation and growth rates