Economic recovery slow – Good news…the economic recovery is real and on-track (now four quarters of positive growth)! International credit rating agency Moody’s is upbeat about NZ, expecting a ‘strengthening upswing and self-sustaining economic expansion during 2011 and 2012’. Leonie says the Rugby World Cup won’t hurt either :-) . Our export sector is leading the charge, and Moody’s note ‘NZ is well placed to continue benefiting from Australia and Asia’s strong growth prospects, though at this stage the non-exporting part of the economy remains subdued’. Bad news is the recovery is very slow with some indicators easing off :-( . While business confidence is at a good level and consumer confidence has improved*, consumer spending has remained weak so far, and the tax cuts in October will be a much needed shot in the arm. Infometrics is forecasting economic growth to peak at 4.7% in the year to March 2012, before easing off to about 3%.  This is good for the medium term property market.

* UMR Consumer Comfort Index (July 2010) & National Bank of New Zealand Business Outlook Survey (June 2010).

Leonie Snook, Top Wellington Real Estate Agent