12 Dec 2011

Slower growth expected in latest survey of economists

1:51 pm on 12 December 2011

Financial and economic forecasters have pared back their predictions for economic growth because of the darkening global outlook and delays to the rebuilding of Christchurch.

The New Zealand Institute of Economic Research's latest round up of economists' forecasts show respondents expect the economy to grow by 2.2% in the year to the end of March, compared with the 2.6% forecast in September.

Growth is expected to accelerate to 3% in 2014 but that's less than the 3.7% forecast three months ago.

A weaker economy and subdued inflation mean economists now expect the Reserve Bank to raise interest rates later and more gradually.