KEY POINTS:
Economic growth over the next two years would be moderate, a compilation of forecasts from various agencies concludes.
The New Zealand Institute of Economic Reserch (NZIER)'s consensus forecast expects annual gross domestic product grow of 2.9 per cent for the March 2008 year, compared with a forecast of 2.4 per cent in the previous survey.
Growth for the March 2009 and 2010 years would be 2.1 per cent and 2.7 per cent respectively.
Driving the growth would be private consumption which would grow in real, annualised terms by 3.6 per cent, 1.6 per cent and 1.7 per cent in the next three years.
The latter two forecasts was low by historical standards.
Inflation would head above the Reserve Bank's target band, hitting 3.1 per cent in 2007/08.
The consumer price index was forecast to grow 2.8 per cent in the years to March 2009 and 2010.
The kiwi dollar was expected to remain at high historical levels, averaging 71.1 on a trade-weighted basis in 2007/08. The TWI was expected to average 67.3 in 2008/09, up from 64.1 in the previous survey, and 63.9 in 2009/10.
- NZPA
