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Updated at 2:40 pm on 5 November 2012
The Treasury says there is a growing possibility the economy will not grow as strongly as it predicted in this year's Budget.
In May, the government department forecast growth of 0.6% in the September quarter and 1% in the final three months of 2012.
However, it says ongoing concerns about the world economy have taken their toll on domestic business and consumer confidence and this could be reflected in lower growth than it previously forecasted.
Despite those fears, the Treasury says the outlook for the American economy is improving and it expects New Zealand's terms of trade to pick up later in the year.
Copyright © 2012, Radio New Zealand
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