20 Apr 2014

Joyce pours scorn on bubble prediction

2:15 pm on 20 April 2014

Associate Finance Minister Steven Joyce is scornful of suggestions that New Zealand is experiencing an economic bubble that might burst.

Steven Joyce.

Steven Joyce. Photo: RNZ

He says New Zealand's recovery is solid and broadly based.

The prediction of a collapse came from an American economic commentator Jesse Colombo, writing in Forbes magazine.

Mr Colombo predicted the 2008 crash and says high house prices combined with an end to low interest rates in New Zealand could cause collapse here.

But Mr Joyce said Mr Colombo is possessed with economic bubbles and spends his time predicting collapses in many countries.

He added Mr Colombo has picked on housing in this country, but ignored other advantages like improving trade balances and low public debt.