Prime Minister John Key must act decisively as soon as possible to introduce steps to stave off what is increasingly looking like another year of recession.
His Government is under criticism for taking 27 days of holidays during the first 100-day action plan, something he will be keen to redress when he meets his economic ministers tomorrow to discuss the issues facing the country as a result of the global crisis.
Mr Key has called the meeting so ministers could be briefed, discuss the economic outlook and receive an update on future initiatives.
"The economy will be the dominant issue for the country in 2009.
"The National-led Government is on track with its action plan for the first 100 days, but we recognise more will need to be done to help address the challenges New Zealand faces."
His timing could not be better in calling the meeting, given the results published this morning from the New Zealand Institute of Economic Research's quarterly survey of business confidence.
The results were at a near 40-year low.
Economists are picking the country to remain in recession for most, if not all, of the year.
Every indicator in the survey made for gloomy reading, particularly the labour market figures, which suggest unemployment will go higher than the predicted 6%.
Across the Tasman, Australia's Government is considering bringing forward large cuts planned for 2010 to help stimulate the economy.
The Australian Government has already delivered a $A10.4 billion ($NZ12.51 billion) economic stimulus package targeting poorer families and pensions.
Many believe more action is needed.
A $A3.4 billion tax cut was locked in from July 1 and the Government was considering bringing forward a further $A4.5 billion in cuts planned for mid 2010, The Australian newspaper reported.
British Prime Minister Gordon Brown pledged yesterday to spend 500 million ($NZ1.3 billion) to help the long-term unemployed as layoffs piled up in the worst UK downturn in 20 years.
Unemployment in Britain is already at a 10-year high and set to climb further, with the country going into its first recession since the early 1990s.
Mr Brown said the Government would help employers who took on new staff, help young people with new apprenticeships and offer aid to people starting their own businesses.
Measures to increase bank lending for small businesses would be announced later this week.
In Germany, the ruling coalition reached agreement on Monday on a new economic stimulus package worth 50 billion ($NZ118.8 billion) aimed at helping Europe's largest economy through what could be its worst post-war recession.
Italy's Intesa Sanpaolo SpA bank will meet Treasury officials in coming weeks to evaluate possible moves to bolster the Italian banking system.
Intesa operates through 6050 branches in Italy and 1279 branches and representatives in 34 other countries.
The European Commission has approved a package from Italy's centre-right Government equivalent to $NZ47 billion, which would see the state underwriting subordinated debt instruments.
All of that economic news has come in just two days this week.
If Mr Key needed any proof that urgent action beyond the flurry of measures introduced before Christmas was required he need look no further than the Standard & Poor's downgraded outlook on this country's foreign currency rating to negative from stable.
Time for talking is over.
