New Zealand Institute of Economic Research (NZIER), in its recent report, has expected economic growth of average 1.3% up to March 2010 maintaining that the worst has been over, and the country has, by an large, come out of financial trouble.

Revising its growth prospects upwards, the institute hopes slight improvement in the economic scenario as evident from the rising demand across key economic segments. NZIER forecasts New Zealand's growth to touch 2.7% by March 2011 and 3.4% in the subsequent year, but it cautioned against currency recovery on account of dollar fluctuations.

New Zealand's quarterly GDP is also expected to improve after September. Employment forecasts remained almost unchanged and the institute allayed fears of further retrenchments. Private consumption may slightly decrease by 0.6 per cent amid uncertainties in consumer recovery. Export figures have also been revised, and exports are forecast to contract 1.1% to March next year.

The survey by NZIER further states, "This partly reflects a very resilient export sector to date. However, uncertainty has increased and this is likely related to a wide range of views on the currency."