16 Jun 2014

Strong economic growth tipped

8:27 am on 16 June 2014

The economy is expected to have grown strongly in the March quarter, which will see annual growth top 3 percent for the first time since 2007.

A Bloomberg News survey of 11 economists found expectations range from growth of 0.9 percent to 1.4 percent in the three months ended March. The figures are due on Thursday.

ASB Bank chief economist Nick Tuffley, is expecting growth of 1.1 percent in the three months following growth last year averaging about 1 percent each quarter.

He said there had been a strong surge in both residential and commercial construction activity in the first quarter and an overall increase of 13 percent in construction is being factored in for the quarter.

"The Reserve Bank's factored in a pretty healthy outcome so if we get something that's in a range, let's say 0.9 through to 1.3 percent that would be broadly enough in line with the Reserve Bank's expectations and just reinforce that the economy's continuing to get up a fairly good head of steam."