World Economy

NZ Economy to Grow 2.9%

NZ Economy  to Grow 2.9%NZ Economy  to Grow 2.9%

An independent economic think-tank has revised up expectation of growth of New Zealand on the back of a stronger outlook for household spending while expectations of inflation and wage growth remain modest, Xinhua reported. The Consensus Forecasts from the New Zealand Institute of Economic Research on Monday indicated expectations of robust economic growth through to 2019, with annual average growth expected to pick up to 2.9% in 2018, before moderating to 2.6% in 2019. However, there was a large degree of uncertainty over the growth outlook beyond 2016, with annual average growth forecasts for the March 2019 year range from 1.6% to 3.2%, said the NZIER report. “The stronger housing market, phenomenal population growth and lower interest rates have encouraged households to spend,” said the report. “Forecasters expect household spending growth will be even stronger over the next few years. Expectations of stronger household spending would also boost imports, while expectations of export growth beyond next year had been revised down on the basis of a weaker global outlook.