Mike's Minute: Our wrecked economy is making international headlines

The Mike Hosking Breakfast

Last year was the first time in 20 years that there were fewer cafes than the year before.

If that isn't a reality check on the state of our economy, then nothing is.

Yes, we are starting to see some light. There is some confidence here and an interest rate cut there.

But the tail end, well I hope it’s the tail end, of what is likely three recessions in two years has taken a catastrophic chunk out of our economy.

I read a piece on an international site over the weekend about the quote-unquote, "economic refugees who are fleeing New Zealand in record numbers".

The most depressing stories about this country are the ones written by offshore operators.

We only make the news for exceptional stuff; exceptionally good or, in this case, exceptionally bad.

Let's do a piece on a basketcase. Who can we find? Good old New Zealand.

Pandoro announced Friday they are closing in Wellington. They aren't the first obviously. There has been a growing business lately on stories about closing hospitality in the capital.

The owner was interesting. It seems it’s a mix of Covid as people went home and not everyone came back, but also of cycleways and bus lanes killing traffic and road cones and construction closing roads and therefore access.

Obviously, the economy is in there too. So the question then becomes, just how badly do you want to hobble your city's prospects?

In Wellington they are laying them off left, right and centre as well. So a lot of people at home, a lot of people losing their jobs, a lot of places you can't get to and an economy going backwards. Good luck selling ciabatta.

On the hospitality scene, a lot of people come and go, as they always have, just like construction.

But when the names are a bit well known that always catches you a bit, doesn’t it?

Smith & Caughey's, or in Wellington's case you've got Kirkcaldie & Stains and Pandoro, they're names that have been around, survived a lot and seen hard times.

Yet this time they can't do it.

What's that tell you about how badly this place has been wrecked?

So badly, that we make international headlines for it.

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