The Institute of Economic Research says New Zealand has a long, slow grind back to economic normality before pre-recession growth rates are regained.
A new forecast says the country faces a long, slow grind back to economic normality before its pre-recession growth rates will be regained.
The latest quarterly prediction issued by the institute show it expects the economy toshrink 1.5% in the year to March -the lowest annual growth rate since the end of 1991.
NZIER chief economist Johannah Branston says the rate of unemployment is expected to surpass 6% by this time next year, but the likelihood of it moving into double figures is very low.
Dr Branston says it's likely to be four years before New Zealand returns to the growth rates seen before the recession.
New Zealand has now been in recession since the April quarter last year.
The last recession was in 1997-98, which lasted for three quarters.
