A leading international credit rating agency has downgraded its outlook for New Zealand's economy, saying it doesn't expect growth to be as strong as previously thought.
Fitch Ratings has affirmed its AA credit rating for New Zealand, but says the outlook for our agricultural exports means future growth won't be quite as strong.
The report from Fitch said GDP growth for New Zealand was still expected to pick up to 2.4 per cent and 2.6 per cent in 2016 and 2017 respectively - a slower pace than it forecast in its review in July last year.
Business investment was expected to experience a slight rebound, according to Fitch.
"We assume this will be partly offset by lower dairy production and slower residential investment growth, with stronger construction activity in Auckland unable to fully replace a decreasing contribution from the Canterbury rebuild," the report said.