NZIER Raises New Zealand's Economic Growth Forecast

Sponsored Links

Economic growth forecast for New Zealand have been revised upwards for the first time in over a year, the New Zealand Institute of Economic Research's latest Consensus Forecast Survey said Tuesday.

The firm expects the country to resume growth in the September quarter, rising 0.1%, after a contraction of 0.2% in the June quarter. Moreover, the firm revised upwards its economic growth forecast for the year ended March 2010, to now show a decline of 1.3% from a 1.6% contraction estimated in its June survey. Further, it expects the growth to be 2.7% in the year ended March 2011 and 3.4% in 2012 respectively.

However, NZIER remains pessimistic about the labor market, and forecasts unemployment to hit 7.1% by March 2010 and 7.3% in March 2011 from 6% now. At the same time, its expectations for employment were less pessimistic, with the firm expecting employment to drop 1.8% in the year to March 2010, less severe than the 2.7% fall estimated in its earlier survey, and to improve in the following years.

Consumer price inflation is forecast to be 1.9% in March 2010, and is expected to remain flat until 2012.

(Market News Provided by RTTNews)