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$100 note - Source: ONE News -
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The New Zealand Institute of Economic Research is predicting a bumpy and subdued economic recovery for New Zealand.
The NZIER has released its March 2010 Quarterly Predictions, with a warning that while the recession may be over the economic recovery will be "jagged."
"We expect economic growth of 2.7% in 2010 and 1.4% in 2011," says Principal Economist Shamubeel Eaqub.
"Regulatory uncertainty, renewed weakness in housing and a fragile global recovery mean the economic outlook is uncertain."
Eaqub also expects the Reserve Bank to hold off on any rates rises until the September quarter.
"Some economic indicators domestically and internationally are ringing alarm bells. We see little urgency for the RBNZ to raise interest rates in this environment."
Eaqub says the labour market is stabilising and should improve from mid-year.
"The unemployment rate is likely to peak around 7.5%, similar to the 7.3% rate in December 2009. However, there are many applicants relative to jobs, this will restrain wages for a further 12-24 months."
