Exports under pressure

Economists expect growth to slow in the coming year because of the outlook for housing and exports, an Institute of Economic Research survey says.

The average forecast of the 11 economists surveyed was that growth would probably slow to 2.4 per cent in the year to March 31, 2006, from 4.2 per cent a year earlier.

The survey also predicts that home building will probably decline 8.1 per cent in the year to March 31.

A Government report yesterday said housing rose 5 per cent in the year to March.

Exports are expected to grow only 3.2 per cent this year. The dollar's 11 per cent surge against the greenback has crimped exports, which make up 30 per cent of the economy.

- BLOOMBERG