Introduction: The New Zealand economy will grow strongly over the next couple of years, according to the latest NZIER Consensus Forecasts. Economic growth will pick up from 2.9% in the March 2014 year to 3.6% the following year.
Exports this year were depressed by a drought, but will grow strongly in future years. Dairy production has already recovered strongly from the 2013 summer drought.
The labour market will improve. There will be more jobs, fewer unemployed and wages will grow.
Inflation will pick up towards 2.5% over the next few years. Interest rates have already begun to increase and the 90 day rate will rise to 3.6% by 2015.