NZIER: Forecasters have revised up their NZ growth and inflation forecasts

The New Zealand Institute of Economic Research (NZIER) published a forecast from economists for the NZ economy on Monday, with the forecasts for growth and inflation revised upwards.

Key Highlights:

Forecasters have revised up their growth and inflation forecasts

Annual inflation is expected to reach the RBNZ's 2% mid-point target by March 2019

Continued strong migration-led population growth expected to boost household spending and residential construction further over the next few years

Businesses are also feeling more confident, and are more optimistic about investment and hiring

Underlying trend improvement in employment demand

Unemployment rate expected to fall to 4.6% by March 2018

Skills shortages becoming more apparent, thus wage growth has been revised up

Forecasts range from 1.7% to 3.2% for the year to March 2020