Continued global uncertainty is impacting on New Zealand’s economic performance, with a number of indicators pointing to lower growth projections than previously forecast, according to the BusinessNZ Planning Forecast for the December quarter 2011.
On the positive side, New Zealand’s key trading partners are still performing satisfactorily, boding well for steady, but not spectacular growth over the medium term.
World commodity prices have continued to ease of late, although New Zealand’s terms of trade remain sound.
Reduced capacity pressures internationally and domestically continue to take the heat off inflationary pressures, although non-tradable inflation remains a concern.
The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators, including GDP, export volumes, commodity prices and inflation, debt and confidence figures.
The BusinessNZ Planning Forecast for the December 2011 quarter is here on www.businessnz.org.nz