Economic outlook still positive: ASB
ASB has released its latest Quarterly Economic Forecasts, which indicate short-term wobbles due to election uncertainty. But they should dissipate in time for growth to firm to about 3% per year by mid next year.
ASB chief economist Nick Tuffley said it was a typical market response to a new government.
“But we emphasise that any uncertainty is going to be short-lived. It’s important to remember the underlying economic picture is what will have the dominant influence on the business environment. Local and overseas influences point to overall economic growth around 3%, which is still pretty decent,” Tuffley said.
“Even with some looming changes to the Reserve Bank’s policy target, interest rates are still likely to be low for some time, certainly over the next year.”
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