Inflation weighs heavily on New Zealand economic forecasts

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Wellington, March 14 (IANS) Economists are expecting New Zealand’s economy and employment to grow over the next three years, although the outlook for inflation and wage growth is subdued, according to a survey of economic forecasts on Monday.

Headline inflation would get back within the Reserve Bank of New Zealand’s 1 percent to 3 percent inflation target band, said the New Zealand Institute of Economic Research (NZIER) Consensus Forecasts.

However, the consensus was still for headline inflation to edge close to the 2 percent midpoint target from the second half of 2017, Xinhua news agency reported.

Recent developments pointed to an improvement in economic activity, and the consensus was that this would flow to a stronger growth in the subsequent years.

Economic growth is expected to pick up to an annual average rate of 3 percent in 2018, before moderating to 2.5 percent in 2019.

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