In these highly uncertain times households themselves act to restrain growth by increasing savings and reducing spending. Obtaining the right balance between these factors will largely determine the direction of the western economies with a positive outcome being sustained ultimately by the return of business and consumer confidence leading to investment and productivity growth.
Similar forces can be seen at play in the New Zealand economy. The difference being that the imbalances and structural issues here are not nearly as deep-seated as in many of the western economies.