A leading economics agency has warned that New Zealand’s economy’s recovery plan is has facing the risk of going off track. It is admitted by the Treasury also, the recovery plan is working as it ought to work. While there will be some growth in next 18 months, the economy has been walking over a tight line between a big downturn and slow recovery as per the prediction of Business and Economic Research Limited (Berl).

The chief economist, Mr. Ganesh Nana of BERL said that it was most unlikely that the recession would return, but the warning should be taken seriously.

Mr. Nana further has commented that if the recovery of economy is further slowed at Europe and United States, the country’s economy will slip further in recession.

The Treasury has admitted that the growth rate of the economy is slower than they had predicted in the Budget of May and the recovery is slower than the rate of recovery after the previous recessions.

They further said that the rate of economic recovery is slower in previous five quarters that the rate of population growth.