There have been warnings from Westpac about New Zealand's economy, with growth expected to drop below 2 percent and unemployment to climb to 6.5 percent, and the housing market expected to slow.
Welfare agencies are bracing themselves for some tough times ahead.
Salvation Army social policy analyst Alan Johnson this morning joined Paul Henry to discuss how there are tough times on the horizon for some, especially in the provinces.
"Outside of Auckland, it looks like places such as Canterbury, Southland and the Waikato, things aren't looking so good," says Mr Johnson. "We might find that those smaller towns will find it tough in terms of jobs, young people in particular leaving school."
Watch the video for the full interview.