Outlook for economy continues to improve

The best terms of trade since the early 1970s and growing business confidence are bringing a positive outlook for the New Zealand economy, according to the BusinessNZ Planning Forecast for the June quarter 2011.

The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators, including GDP, export volumes, commodity prices and inflation, debt and confidence figures.

The ECI for the June quarter is 22. This is up 10 from the previous quarter and up 10 from a year ago.

Key factors include the continuing rise in world commodity prices and continued strong growth in New Zealand’s largest trading partners Australia and China.

Projections of 3-4% growth for 2012 and 2013 appear feasible.

The BusinessNZ Planning Forecast for the March 2011 quarter is here on www.businessnz.org.nz