10 Oct 2013

NZ predicted to be one of strongest growing economies

11:47 am on 10 October 2013

The International Monetary Fund says New Zealand will be one of the strongest growing of the world's advanced economies this year and the next.

The IMF's annual economic outlook says activity in the major economies has started to accelerate from subdued levels as the world recovers from recession.

It forecasts New Zealand's GDP growth rate this year to be 2.5%, rising to 2.9% by next year - figures bettered only by a handful of the 35 advanced economies.

The report projects an unemployment rate for New Zealand next year of 5.3%, which compares with 6% for Australia, 7.4% for the United States and 12.2% for the Euro area.

The IMF cautions its forecast assumes the public spending shutdown in the United States will be short-lived and the debt ceiling raised promptly, saying failure to resolve the situation will have an economic spillover for the rest of the world.