New Zealand economy better than expected – ASB Bank

The ASB Bank has said that New Zealand’s economy has recovered early from the global recession, and it will be stronger than what the market currently expects in 2010. Increasing immigration, along with a surge in the housing market, are key factors of this growth.

The country’s economy is expected to contract 1.5% this year, a number than is 2.5% less than what was previously forecasted. ASB also expects growth to reach 2.4% in the year ending on 31 March 2011. This positive news comes after a previous forecast of 1.9% growth that the bank had made in July.

The economy officially left the recession stage in June quarter, when it expanded 0.1% after shrinking for six consecutive quarters, making New Zealand one of the first countries to wave goodbye to the financial crisis.