New Zealand Economists Lower 2008 Growth Forecasts, Survey Says
Seven of 13 economists surveyed by Bloomberg News predict that the economy was in recession in the first two quarters of the year, which will prompt the central bank to cut interest rates as early as July.
New Zealand economists have slashed their forecasts for economic growth as record-high interest rates slow spending and demand for houses, according to a survey by the New Zealand Institute of Economic Research Inc.
Economic growth will probably slow to 1 percent in the year ending March 31, 2009, from 2.9 percent a year earlier, according to the average estimate of 11 economists surveyed by the Wellington-based institute. Three months ago, analysts forecast 1.7 percent growth in the year through March 2009.