PHOTO: Auckland, New Zealand
Slowing house prices, rising inflation pressures, and sooner-than-expected rises in interest rates will be prominent in the near term economic outlook, according to ASB Bank.
Growth of house prices is expected to drop to five percent by the end of 2022. Photo: 123rf
In its latest quarterly forecasts the bank said there were growing pains ahead as the economy continued the recovery from the pandemic.
Chief economist Nick Tuffley said the vaccine rollout around the world was pointing to above-average growth this year.
He said the trans-Tasman bubble, global commodity demand, and rebound in domestic spending had all been positive for the economy, which had out-performed many other developed economies.
But challenges on housing and inflation were looming.
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