World

Massive earthquake sets back NZ economic recovery

admin Contributor
Font Size:

CHRISTCHURCH, New Zealand (AP) — New Zealand’s prime minister warned Monday that the country’s economic recovery will be hurt by the weekend’s powerful 7.1-magnitude earthquake that smashed buildings and wrecked roads and rail lines in the city of Christchurch.

The aftereffects of the temblor are still coming to light. Residents in a new subdivision in a southern suburb were evacuated Monday from their houses, which became mired in deep layers of silt that spewed from the soft ground as it turned to liquid under pressure from the quake.

“We thought we were having a tsunami,” said homeowner Lalita Sharma. “We stepped outside into knee-high liquid. We thought the house would sink.”

Mounds of sand covered front lawns and driveways, and some houses had been ripped from their foundations. A driveway that had sloped upward from the road was now flat, the rose garden buried in sand.

Army troops have taken control of central Christchurch to help police secure streets and badly damaged businesses in the worst-hit center of the city. The area remained cordoned off and under nighttime curfew, with only building and business owners allowed access.

“There will be considerable disruption to the (regional) and national economy in the short term,” but activity should pick up as reconstruction gains momentum, Prime Minister John Key said. The country’s economy has now recorded two quarters of minor growth after struggling to escape 18 months of recession.

The quake struck at 4:35 a.m. Saturday near the South Island city of 400,000 people, ripping open a new fault line in the earth’s surface, destroying hundreds of buildings and cutting power to the region. No one was killed, and only two serious injuries were reported.

Key, who toured the city’s damaged areas over the weekend, said 430 houses and another 70 buildings, many of them older structures, were already earmarked for demolition because of damage caused by the quake. Around 100,000 of the region’s 160,000 homes had sustained some damage, he said.

“I was awe-struck by the power of the earthquake and the damage it has caused in the city,” he told reporters. “It was miraculous that nobody was killed.”

A quake-damaged building partially collapsed into a suburban street Monday and officials took urgent steps to bulldoze and remove it. There were no injuries reported.

“Police had a unit going past just as it happened and they managed to stop and block (off) the road,” Inspector John Price said.

Key said the earthquake would have a short-term negative impact on economic growth, but that loss “would be more than made up by the stimulus impact that takes place with the rebuilding program.”

The government plans to pay at least 90 percent of the hundreds of millions of dollars needed to rebuild the city’s water, waste water and road infrastructure, Key said.

Economists agreed the immediate economic outlook for quake-ravaged Christchurch is bleak, but noted reconstruction would provide a boost to a struggling construction sector next year.

“I think people are going to be pretty conservative over the next three months. What we are seeing is … negative growth in the near term,” ANZ Bank chief economist Cameron Bagrie said.

More than 80 aftershocks, ranging from magnitude 3.2 to 5.4, have rocked the region since the major quake Saturday.

Rain was falling Monday in the nearby Southern Alps and foothills, increasing the risk of flooding. Civil defense officials warned that stop banks, or flood protectors, weakened by the quake may fail to hold rising waters. Engineers were inspecting the banks Monday.

Around 150 people have been evacuated from a trailer park near the Waimakariri River as a precaution.

New Zealand sits above an area where two tectonic plates collide. The country records more than 14,000 earthquakes a year — but only about 150 are felt by residents. Fewer than 10 a year do any damage.

New Zealand’s last major earthquake registered magnitude 7.8 and hit South Island’s Fiordland region on July 16, 2009, moving the southern tip of the country 12 inches (30 centimeters) closer to Australia.

___

Associated Press Writer Ray Lilley in Wellington contributed to this report.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel