more than one in 10 new zealanders with a mortgage personal loan or credit card are behind in their repayments while company liquidations have increased 35 on the same period last year as higher interest rates weigh on the economy credit bureau centrix estimated 117 of the active credit population was in arrears in may up from 113 in april according to a report tuesday in wellington average monthly business liquidations in june rose to the highest since 2020 the company said new zealand’s central bank has tightened aggressively in the past year and a half taking the official cash rate to its highest since 2008 and driving up the costs of home loans vehicle finance and personal borrowing the rising cost of repayments is adding to a squeeze on consumer spending adding to the risk of sluggish economic growth for the remainder of 2023 “there’s no question some kiwi households and businesses are walking an economic tightrope” said centrix managing director keith mclaughlin “it’s no secret a recession was the reserve bank’s goal to help curb spending what remains to be seen is how the rest of 2023 plays out for consumers and businesses on the front line” new zealand was in recession earlier this year and most economists expect another contraction will hit later in 2023 although their view on the timing is mixed the rbnz has said a recession was needed to slow demand and bring inflation back to the 13 band it targets new zealand seen stumbling from one recession into another centrix estimated 426000 people were behind on repayments in may although more than twothirds were less than 30 days late arrears on personal loans and buynowpaylater facilities both exceeded 10 while autoloan arrears returned to levels last seen in the second quarter 2020 homeloan arrears were just 132 representing about 19500 borrowers but still the highest since early 2020 centrix said across businesses credit defaults have jumped led by hospitality retailing and property companies centrix said there was a monthly average of 146 liquidations in the year through june up from 108 in the 12 months ended june 2022 and the highest since december 2020