Economic recovery is not going to give the desired result for New Zealand. As experts say, it is going to be a 'prolonged process'.

The same are the views of Reserve Bank governor Alan Bollard, who also believes that the short term outlook is quite favorable.

Alan was speaking during the Deloitte tax conference in Auckland where he said that the financial crisis was not as harmful as the 1930s crisis. But, he added, that "we learnt that recovery to economic normality can be a slow, fragile and uncertain process, with temporary set-backs and aftershocks."

Because of the current crisis, global trade has seen a beating and that is what is impacting the Kiwi economy which is dependent on trading. Also growing currency tension has unleashed other major conflicts.

While for New Zealand the demand from Western countries is gradually improving, the figures are not very encouraging. Housing troubles continue in US and the wood exports of New Zealand have fallen down drastically.

For saving, the government has provided cushion for a very long time but the deficit has grown very large and that has stopped any further injection into the same.