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Govt welcomes strong OECD forecast

NZ Newswire logoNZ Newswire 29/11/2016

New Zealand's economy is looking strong against others in the developed world, the latest global economic report released in Paris overnight has revealed.

Finance Minister Bill English has welcomed the OECD's forecast of solid continued growth over the next six months.

The report predicts strong growth to moderate by less than three per cent over the short term, taking into account net migration, slowing expenditure on the Christchurch earthquake and spending after the Kaikoura quake.

"The government has substantial fiscal space, but immediate fiscal stimulus would risk overheating the economy," the report says.

"To the extent that the resources used in the Canterbury earthquake rebuild are freed up in the course of 2017 and beyond, the government should fund infrastructure and increase funding to meet the challenges posed by inequalities and exclusion."

Mr English said it showed the importance of keeping government under control, reducing debt and investing in public services.

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