Weakness in the economy is likely to be short-lived, according to the ASB Bank.
Gross Domestic Product contracted in the June quarter, with seasonally-adjusted production-based GDP falling 0.7 per cent quarter on quarter.
However, ASB economist Rozanna Wozniak says growth is expected to return to year-on-year levels of around 3 per cent.
She says the rural economy continues to gather momentum, and exports are making a positive contribution.
Ms Wozniak says the export growth is being driven by a weak currency, rising world commodity prices, a strong world economy, and good weather.
At midday, the NZSE40 had gained 10 points to 1922.
WestpacTrust had dropped 13 cents, Carter Holt Harvey had gained 2 and Telecom was 9 cents higher.
The tradeweighted index stood at 46.75 while the 90 day bank bill rate was 6.69 per cent.
- IRN
Economic prospects good, says ASB
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