New Zealand Institute of Economic Research has ruled out the possibility of further deterioration of economy adding that worst has been over without causing serious loss as was originally perceived. However, the economic think tank is still tightlipped about fast recovery adding that uncertainties still prevail in the economic system.

NZIER, in its latest Consensus Forecasts Survey, revised its GDP forecasts at -0.4% against -1.3% projected in the survey conducted in September. Further, GDP for March 2011 and 2012has been projected at 2.8% and 3% respectively amid uncertainties in the system.

The country is expected to do a little better on employment front and it has been projected at 7 per cent next year. Unemployment rate is forecasted to decline at 6.3% in March 2012.

The NZIER is, however, not so much optimistic about wage inflation that is projected to decline from 3.5% in March 2010 to 2.2% in the following year. The think tank said, "This implies no real wage increases in coming years, yet another cautious signal for the household sector."

Recession hit export segment has been projected to do well in March given to stability of kiwi dollar.