More than half of voters believe the economy is doing worse than it was a year ago and the majority do not think it will improve in the next year, the latest Herald-DigiPoll survey shows.
The poll reveals that 43.5 per cent of people believe the economy will be worse in a year, while 24.9 per cent think it will improve.
And 55.9 per cent say the economy is doing worse now than it was a year ago.
The survey comes after talk of a possible recession.
Figures released last month showed the economy did not grow at all over the second half of last year.
Economic output shrank 0.1 per cent in the last quarter of 2005 - the first time since mid-2000.
Another quarter of negative economic growth would technically be considered a recession.
But the economic contraction comes on top of five years of strong growth which has seen the economy expand by 19 per cent.
Despite the current economic uncertainty, the Herald-DigiPoll survey shows households are continuing to increase their spending, with 53.4 per cent saying they are spending more than they did this time last year.
Voters are also concerned about the falling New Zealand dollar, with 51.2 per cent of those quizzed saying they believed it would have a negative impact on them.
And one of the most contentious issues in last year's election - tax cuts - still divides the electorate.
When asked whether the Government should announce a tax cut for everyone in next month's Budget, 42 per cent said yes. However, 37.3 per cent said taxes should be kept at the current level and the surplus should be spent on services.
And in the wake of this month's extension to the Government Working for Families package - that will give almost $1.6 billion more to working families - 17 per cent of voters say taxes should be further reduced for the low paid.
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