New Zealand's economy remains at risk from another period of contraction if the global recovery falters, Finance Minister Bill English says.
"There's some risk of another down leg depending on how the recovery shapes up," English said in an interview during a visit to Hong Kong, where he is meetinginvestors.
New Zealand's economy expanded for the first time in six quarters in the three months ended June 30, ending the nation's worst recession in three decades. The economy's reliance on exports, which make up 30 per cent of gross domestic product, makes it sensitive to a pick-up in demand for commodities as global recovery gathers pace.
English said his Government had been underpinning the recovery through a stimulus package that combined tax cuts and government investment. There would be ongoing financing of the government services by debt, he said.
"We won't be continuing the momentum of that stimulus longer than we need to," he said.
