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Brexit won't cause another GFC: Key

NZ NewswireNZ Newswire 27/06/2016
Prime Minister John Key © Getty Images Prime Minister John Key

Prime Minister John Key doesn't think Britain's exit from the European Union will trigger another global financial crisis.

And he doesn't believe New Zealand's economy will suffer.

"The markets will settle down, I don't think it will cause a repeat of the global financial crisis," he told reporters on Monday.

"And I take heart from the fact that New Zealand is a lot stronger than it was in 2008, and I think world markets are more robust."

Mr Key says there's work to be done to negotiate access to the British market when it ceases to be part of the EU, and that could take time.

"There will be quite a lot of pressure on the UK system, because they have to establish their own access to the EU and at the same time try to work with countries like Australia and New Zealand."

Mr Key says some of the work covering Australia and New Zealand will be similar but there won't be a joint free trade agreement because of differences in economies.

New Zealand is already negotiating an FTA with the EU, and Mr Key says the government hopes it might be ready for signing in early 2018.

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