10 May 2011

Earthquakes will cost 7.5% of output - IMF

1:35 pm on 10 May 2011

An International Monetary Fund (IMF) report on New Zealand says the Canterbury earthquakes are likely to cost the economy proportionately more than the recent earthquake in Japan.

The IMF estimates the cost of the province's earthquakes will be equivalent to 7.5% of the New Zealand's economic output.

It says public spending should remain supportive of growth and reconstruction efforts in the short-term but it welcomes the Government's intention to get its books back into surplus as soon as possible.