New Zealand’s Worst Drought in 30 Years May Cost NZ$2 Billion

New Zealand’s most widespread drought in at least 30 years may cost NZ$2 billion ($1.7 billion) as dry conditions across the North Island threaten economic growth, the government estimates.

“The latest advice is that somewhere between $1 billion and $2 billion will be knocked off our national income, and as every week goes by, the prospect of it being $2 billion instead of $1 billion grows,” English said in an interview on TVNZ’s Q+A program yesterday. “We’ll be getting updated advice over the next few weeks from the Treasury as we prepare the forecasts for the next budget in the middle of May.”