How does the economic crisis effect countries like new zealand?

What are countries doing to help with this crisis?

http://www.nzherald.co.nz/business/news/headlines.cfm?c_id=3

See the comparison to Iceland.

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The economic crisis can have significant effects on countries like New Zealand. Here's how it generally impacts these nations:

1. Decline in GDP: An economic crisis often leads to a decline in Gross Domestic Product (GDP) due to reduced economic activity. This can result in recession or even depression, negatively impacting employment rates and business growth.

2. Decrease in government revenue: In times of economic downturn, tax revenues tend to decline as individuals and businesses face financial constraints. This can limit the government's ability to fund public services and initiatives.

3. Increased unemployment: Economic crises can lead to job losses as companies struggle to stay afloat. This can result in higher unemployment rates, decreased consumer spending power, and further negative impacts on the economy.

4. Trade disruption: A downturn in the global economy tends to result in reduced international trade. For countries heavily dependent on exports, such as New Zealand, this can lead to reduced demand for their products, negatively affecting industries such as agriculture and tourism.

To mitigate the impact of economic crises, countries adopt various measures:

1. Fiscal stimulus: Governments often implement expansionary fiscal policies, such as increased government spending and tax cuts, to stimulate economic growth and create employment opportunities.

2. Monetary policy interventions: Central banks may lower interest rates to encourage borrowing and investment, making it cheaper for businesses and individuals to access credit and capital. Quantitative easing, where central banks buy government bonds or assets, is another tool used to boost economic activity.

3. Support for businesses and workers: Governments may provide financial assistance, loans, subsidies, or wage support to affected businesses and individuals. This aims to prevent bankruptcies, layoffs, and massive job losses.

4. Structural reforms: Economic crises may prompt countries to undertake structural reforms, such as improving regulatory frameworks, labor market flexibility, and investment in research and development. These reforms aim to strengthen long-term economic resilience.

It's important to note that the specific actions taken by each country will vary depending on their economic circumstances and policy priorities.