Outlook for Investment Markets
The New Zealand economy has continued to perform well. Although the latest business and consumer confidence surveys pulled back a little, they were still at historically robust levels and the economy is likely to grow strongly over the next 12 to 18 months. This has not translated automatically into easy gains for corporate profits, however, as the economy faced the headwinds of progressively higher interest rates and an overvalued currency. At some point, investors are also likely to start to concentrate more on how growth and profit prospects are shaping up on the other side of the current reconstruction boom but in the interim, business looks set to experience strong trading conditions.
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