2 Oct 2012

Treasury picks slower growth, high unemployment

5:00 pm on 2 October 2012

The Treasury is warning that it expects the country's economic growth to slow and unemployment to remain high.

The economy grew by 1% in the three months to the end of March and by 0.6% in the three months to the end of June.

The Treasury says it is still set to grow in the second half of the year but not as quickly.

It says both manufacturing and the services sector lost momentum during the three months to the end of September, slumping to levels last seen at the depths of the global financial crisis in 2009.

As well, the country's purchasing power fell for only the second time since 2007.

And finally, the Treasury says the employment market is still tough, with unemployment expected to stay high for some time to come.