NZIER Consensus Forecasts: A Sluggish Economy for the Coming Year
Overview
New Zealand's economic outlook for the coming year is looking sluggish, according to the latest NZIER Consensus Forecasts. The forecasts, which are based on a survey of economists, predict that the economy will grow by just 1.2% in 2023, down from 2.2% in 2022.Factors Contributing to the Slowdown
Several factors are contributing to the expected slowdown in economic growth. These include: - The global economic slowdown, which is expected to reduce demand for New Zealand's exports. - The rising cost of living, which is putting pressure on household budgets and reducing consumer spending. - The impact of the COVID-19 pandemic, which is still causing disruptions to supply chains and businesses.Implications for Businesses and Households
The expected slowdown in economic growth will have implications for businesses and households alike.Businesses may need to reduce investment and hiring plans, while households may need to tighten their spending to cope with the rising cost of living.
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