Economic growth has taken a hit but is still likely to remain at around two per cent per year, according to the BusinessNZ Planning Forecast for the September 2015 quarter.

BusinessNZ CEO, Phil O’Reilly, says two per cent growth is better than in many other countries, but risks still remain.

“Our continued heavy dependence on China and Australia for over a third of our exports, and continuing uncertainty about China’s investment slowdown are among the risks.

“However the slide in the New Zealand dollar is helping exporters, and the possibility of further interest rate cuts is positive for business.”

O’Reilly says different sectors of the economy are experiencing different fortunes. “Construction and tourism are going from strength to strength, and manufacturing and services are still trucking on, while dairy remains downbeat, despite recent price upturns.”

The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators, including GDP, export volumes, commodity prices and inflation, debt and confidence figures.

The ECI sits at one for the June 2015 quarter, up six on the previous quarter and down one on a year ago.

The BusinessNZ Planning Forecast for the September 2015 quarter is on www.businessnz.org.nz.

Nerine Zoio: nerine@insideretail.co.nz