New South Wales is close to recession and the housing market at risk of a serious downturn, Westpac senior economist Matthew Hassan told a seminar yesterday.
“We are at the very least heading for a technical recession,” Mr Hassan said, according to the Australian Financial Review.
“NSW is far and away the weakest state in terms of growth, with consumer spending very weak,” he said.
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Mr Hassan said the expectations that unemployment will rise was a “huge risk factor” for the residential property market.
“The real risk is a substantial weakening in the labour market, prompting defaults and forced sales in a market that is already vulnerable,” he said.
Published: 25-09-08
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