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The OECD is predicting the New Zealand economy will grow by an average of more
than three per cent over the next two years.
The forecasts out to 2005 are generally more optimistic than those of the
Reserve Bank, tipping growth of 3 per cent next year and 3.4 per cent in 2004.
This year the OECD believes growth is slowing in the second half of the year,
and will see GDP rise by 4 per cent - the third highest in the 30 member OECD
behind Korea and the Slovak Republic.
The report says the New Zealand economy has cruised through the global
turbulence, but it says business conditions are weakening.
On the global scale the OECD report says a recovery in world economic growth
could be delayed unless interest rates are cut further, to boost confidence.
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