NZ government denies country is in recession
Updated
The New Zealand government has admitted the country's economy is "flat", however it has denied the country is in recession.
The finance minister, Michael Cullen, has told New Zealanders not to talk themselves into a recession.
Our New Zealand correspondent, Kerri Ritchie, says it is easy to see why people are worried.
Petrol is more than $US2.00 a litre in Auckland and the housing market has cooled.
An economic survey has also revealed 18 per cent of New Zealand businesses have seen trading fall and they don't expect the situation to improve.
Prime Minister Helen Clark says it is not the government's fault.
"We're in the middle of a winter, with a lot of offshore factors and the drought which has happened locally impacting on New Zealand but we are in a strong position," Miss Clark said.
Helen Clark's Labour party is well behind in the polls with an election due later this year.
