New Zealand slashes growth forecasts
Updated
The New Zealand Government has slashed its economic growth forecast to nearly zero and says its accounts will fall deep into the red amid the country's first recession in a decade.
The Treasury has cut its forecast for growth in the current year to March to just 0.1 percent from 1.5 percent in May.
New Zealand's finance Minister Michael Cullen says the dramatic scale and speed with which international financial markets have moved in recent weeks have been extraordinary.
The news is seen as a setback for Prime Minister Helen Clark with New Zealand going to the polls on November 8.
The main opposition National Party is planning to announce more generous tax cuts on Wednesday as part of its bid to win back power after nine years out of government.
