It was put forward by the New Zealand's Treasury on Monday via a report that it hopes the real GDP to drop nearly 1% in the March quarter. Furthermore, in the first quarter, the demand and output declined again, leading to decreases in capacity utilization and the demand for labor.

It has been predicted that output in significant trading partners of New Zealand weighted by their share of exports is expected to decrease nearly 2.5% this year.  

“Trading partner growth is expected to return in 2010, but at 2% or less, would be well below what could be considered the normal rate. The prospects for global recovery depend on the rate of progress towards returning the financial sector to health,” reported the Treasury.  

Regarding consumer price outlook, the Treasury forecast inflation to continue to drop over the medium term in New Zealand, regarding consumer price outlook, following easing to 3% in the year to March 2009.

(Via TopNews New Zealand. Contributed by Girish Kumar Guha)