New Zealand in Mourning as #Fonterra Slashes Payout, Fall of 2.7% GDP

The dangers of living in an economy too dependent on agriculture hit home today in New Zealand. Dairy farmers are facing a “disastrous” year after a prediction that none will make money from Fonterra’s payout forecast, issued today. According to an article in today’s NZFarmer.co.nz: Fonterra today cut its farm gate milk price forecast for…

NZ’s Credit Rating Downgraded, Govt’s Economic Management In Disarray

The Wall Street Journal announced today that Standard & Poor’s Ratings Services and Fitch Ratings both downgraded New Zealand’s government debt on Friday, citing the country’s worsening external-debt position and the costs of earthquake recovery. But the WSJ warned there may be worse to come “the double-downgrades come at a sensitive time for the island…