Wellington - New Zealand consumers, who have kept their wallets closed as the economy moved into recession for the first time in nearly 10 years, will fire a gradual to ecovery when they start spending again next year, an influential think tank predicted on Tuesday.
The New Zealand Institute of Economic Research (NZIER) forecast the recession to continue through the current fiscal year ending in March with economic activity contracting to its lowest point of 0.1 per cent
It would recover slowly during next year, with private consumption stimulated by lower petrol prices, falling interest rates and tax cuts, and then accelerate from 2010, NZIER said in its scheduled quarterly predictions.