New Zealand should expect strong and increasingly broad-based economic growth, according to the International Monetary Fund’s latest report on New Zealand, published today.
This growth will be driven by strong construction activity, higher prices for exports and increases in net migration.
The IMF is forecasting annual economic growth in New Zealand to peak at 3.5% this year and not fall below 2.5% over the next few years.
“This is the latest in a series of encouraging reports on the New Zealand economy, which confirms that we are well placed compared with most other developed countries,” finance minister Bill English says.
“The IMF highlights the importance of getting the Government’s books back to surplus to help the Reserve Bank keep interest rates lower for longer,” English says. “Under the previous government, excessive spending, alongside the booming housing market, contributed to floating mortgage interest rates reaching almost 11%.
“A range of indicators points to broad-based growth in the economy,” he explains. “Building consents in March were nearly double the number issued three years ago.
“Business confidence remains near 20-year highs. And employment figures showed 84,000 more jobs in the year to March – the largest annual increase in employment since 2004.”
The IMF report is available here
